Tackling Fraud in the Digital Age
The web is rife with fraudulent activity and with most financial transactions now being carried out online coupled with the relatively porous channels of the digital age, it is the perfect environment for fraudsters to take advantage.
According to the Association of Fraud Examiners, a ‘typical’ business will lose approximately 5% of its revenue each year because of fraudulent activity. So, what can you do to protect yourself?
To combat this growing problem, businesses need to find ways of integrating disparate data sources from both inside and outside of the business to paint a single source of truth.
If you’re a business stakeholder in the finance sector, ensuring you are adequately protected against fraud should be a primary concern. Any failure to effectively address security risks could not only be damaging to brand reputation and the confidence of your customers, but it can also have an adverse effect on shareholder value and ultimately, the bottom line.
Forward-thinking organisations are tackling this problem head on – turning to new analytics capabilities not only to identify the fraud as early on as possible but also to identify the culprits and gather critical evidence to ensure successful prosecution.
A Single View of the Truth
So, how can you succeed in transforming your fraud operations?
To effectively combat fraud, businesses need to find a way to integrate numerous sources of internal and external data together. Once the relevant data is brought together you’ll be presented with one single view of the truth.
By using software which can present accurate data in a visual way, you can eliminate traditional time consuming and error-prone approaches in favor of more agile analysis which can tackle complex investigations quickly and with minimal impact on day-to-day business operations.
Having previously relied on the instincts and hunches of employees, many financial organisations are moving toward automated decision making to standardise processes and to boost consistency and reliability.
The key is to combine business analytics with predictive models that can consider and adapt to new data as it becomes available – becoming smarter and more effective over time. Predictive analytics also enables personalisation, so that informed decisions can be made quickly, but on a unique, case-by-case basis.
Moving from spreadsheets to software requires an openness towards digital transformation – and a strong business case is often needed to access funding to drive fraud prevention forward.
While the cost savings of fraud prevention to your business could be substantial, the impact on customers is what’s really proving to be the strongest pull for many organisations championing this approach.
Integrated data analytics not only helps to combat fraud, but will also help to contain costs and deliver an enhanced customer experience. The deep insight that’s uncovered through the variables is enabling organisations to transform their processes and services to better fit customer needs, leading to happier and more profitable customers.
As part of a wider digital transformation strategy, the ability to integrate disparate systems and tap into unstructured data through Business Intelligence and predictive analytics, will play a major role in mitigating the risk of multi-channel threats – securing customer loyalty and shareholder value.
If you’d like to find out how Portal can help you can turn fraud from a threat to an opportunity, get in touch today to speak to one of our dedicated advisors.