Fraud Orchestration

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Fraud Orchestration

Fraud Orchestration is a paradigm, a unified approach to fraud investigations, operations and fraud compliance. Fraud orchestration is a subset of data orchestration, can be applied to any industry, delivers a single view across multiple business channels as a single, multi-faceted environment rather than as separate siloed, data fragmented environments, enabling a single view of fraud risk across the omnichannel environment.

Usage

The threat of fraud is constantly evolving as criminals respond to our interventions and adapt to changing societal circumstances. From credit/debit card fraud and bogus share scams to embezzlement, insider dealing, benefit fraud, to tax credit fraud, fraudsters are innovating constantly and developing new tools and techniques.

To address the ongoing challenge from fraud, organisations deploy a myriad of fraud prevention technologies across their business channels and locations (This is defined as Serial Fraud Management, where each fraud prevention system has its specialty). A further challenge arises when all these technologies are disconnected from each other, the net result from this disconnect is customer friction, increased fraud and fraud operational overheads as the full picture of fraud across the different business channels and locations are not fully captured.

However, fraud and any associated security must be adaptive. Customer experience is a significant part of any fraud prevention strategy, customers must be able to conduct their business with an optimum level of security, one that is adaptive based on current conditions. This approach is known as a Continuous Adaptive Risk and Trust Assessment (CARTA).

Fraud is not only a financial risk, but also a reputational and regulatory compliance risk. These interconnected risks come with added operational costs but fraud orchestration helps manage and automate all risk categories associated with fraud.

Fraud Orchestration is a parallel approach to fraud prevention, residing on top of the existing fraud prevention technologies and ancillary downstream systems. These systems assist in gathering fraud alerts, transactions and customer data in real-time providing a holistic view of fraud across the entire organization. This results in decreased fraud frequency, false positives, and customer friction while generating fraud prevention standards and fraud compliance insight.

Fraud Orchestration enables businesses to investigate fraud from a single platform, identify adverse trends, make intelligent decisions and automate fraud prevention operations creating a fraud ecosystem existing within a unified fraud mission control.

Global Fraud Statistics

·        According to Javelin, new account fraud increased from $3B in 2017 to $3.4B in 2018, an increase of 13%, account takeover attacks increased from 380K in 2017 to 679K in 2018, an increase of 78%, and credit card fraud decreased from $8.1B in 2017 to $6.4B in 2018, a decrease of 21%

·        The KPMG Global Fraud Survey (2019) reported over 60% of survey respondents (banks) globally experienced increase in fraud volume

·        The KPMG Global Fraud Survey (2019) reported both volume (61%) and value (59%) of external fraud has increased 

·        The Insurance Information Institute (III) fraud complaints reported to the Federal Trade Commission has increased from 38% in 2015 to 48% in 2018, an increase of 26%

·        The Identity Theft Resource Center reported in 2018 there were 864 breaches which exposed a total of 34.17M records

·        The Nilson Report estimates card fraud losses will total $34.66B by 2022, $12.12B (35%) occurring within the United States

·        The Nilson Report states over 50% of all worldwide fraud losses are tied to card not present transactions (CNP)

Fraud Orchestration Vendors

·        FCase is a fraud orchestration technology service creating a mission control for enterprise fraud risk management. Seamless integration with all major fraud detection platforms, reducing fraud operational costs, enhanced fraud monitoring, and increased operational efficiency

·        Net Guardian developed the first augmented intelligence solution made for banks to proactively prevent fraud. A digital banking fraud solution with cloud capability to assist in centralizing fraud detection and prevention operations

·        GBG’s Instinct is a sophisticated application fraud engine that combines rich data, configurable technology (based upon user managed rules & scoring) as well as machine learning to provide fast and effective decision making on the likelihood of an application being fraudulent

·        GBG’s Connexus is a fraud detection and investigation solution for banks and financial institutions. Connexus provides a single unified comprehensive solution using artificial intelligence and real-time data to create a holistic view of risk

·        GBG’s Predator is an account and transactional behaviour analytics solution that is designed for transaction fraud, AML-CFT detection and PSD2 risk assessment. It is multi-channel and used against all profile types. GBG Predator calculates the risk for each event in real-time and alerts automatically to potential fraud events

·        Threat Metrix’s Dynamic Decision Platform is a simple end-to-end authentication orchestration allowing businesses to unite pre-packaged third-party services and customer service software integration

·        Threat Mark’s Anti-Fraud Suite (AFS) is a fraud detection solution based on behavioural profiling and machine learning providing a 360° digital banking protection inside all online and mobile

banking channels. The AFS combines powerful machine learning, evidence-based cyber threat detection, and unique behavioural profiling techniques to create a unified integrated analytical engine

Examples

See Also

•  Orchestration
• Configuration management
• Infrastructure as code
• Server provisioning
• Service-oriented architecture
• Fraud Prevention
• Artificial Intelligence
• Machine Learning
• Automation

Further References

·       Global Banking Fraud Survey

·       Market Guide

·       The Growing Problem of Synthetic Identity and First-Party Fraud Masquerades as Credit Losses

·       Align Your Financial Fraud Detection Strategy with Gartner's Capability Model

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Categories:   Enterprise application integration   Business terms  Computing terminology   Orchestration software Fraud   Financial crime prevention

Fraud Orchestration

This article "Fraud Orchestration" is from Wikipedia. The list of its authors can be seen in its historical and/or the page Edithistory:Fraud Orchestration. Articles copied from Draft Namespace on Wikipedia could be seen on the Draft Namespace of Wikipedia and not main one.

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