Counter-fraud measures are as individual as they are intricate. And although the micro-details vary considerably from business to business, you may be surprised to hear that the most remarkable improvements often follow just one top-level change.
Synectics Solutions sat down with three leading Financial Services clients to learn how they achieved headline-grabbing fraud prevention results.
- A 20% improvement in fraud detection in two months [Skip ahead]
- Bad debt reduced by an incredible 66% [Skip ahead]
- Fraud checks returned in a matter of seconds [Skip ahead]
Client 1: Fraud detection improves by 20% in two months
Nationwide had reached a critical juncture in its fight against impersonation fraud.
Investigators were convinced that some fraud was evading detection within applications. But, using existing methods, uncovering this fraud would increase referral volumes to unmanageable levels.
The answer was to leverage predictive analytics and risk scoring techniques – courtesy of Synectics Solutions’ award-winning Precision tool.
In two months of working typical application volumes, Nationwide reported a 20% increase in the amount of third-party fraud adverse identified. And a short while after that, the financials arrived: fine-tuned predictive analytics had thwarted impersonation fraud to the value of £355,000.
Without Precision, these profit-draining frauds would have been missed, and Nationwide’s referrals would have continued to soar.
Client 2: Bad debt 66% down and 74% of applications fast-tracked
The general upward fraud trajectory has collided with the cost-of-living crisis. The result is a deluge of scams, finance payment defaults and bad debt.
To blunt the trend, this Synectics Solutions client set themselves an ambitious challenge: to build bad debt out of their processes, starting with the crucial onboarding phase.
We chose to leverage our National SIRA fraud data syndicate with Precision predictive analytics, knowing that the two made for a powerful combination.
We architected a solution capable of simultaneously detecting fraud, fast-tracking good customers and flagging the early warning signs of future behaviour changes. In this case, a seemingly safe customer entering the bad debt process.
In a matter of months, bad debt plummeted by 66%. In addition, 74% of customers received a low Precision risk score and could be fast-tracked through onboarding.
Client 3: Crucial fraud checks returned in mere seconds
Our client was redefining how mortgage products were sold in anticipation of a major consumer shift.
Customers were increasingly applying online - and likely shopping around while awaiting a decision. As such, instant application decisioning became a priority.
However, fast-tracking was only an option if our client could guarantee fraud exposure would not increase. Thankfully this was possible by building cutting-edge, real-time checks into their established National SIRA solution.
The enhancement means that mortgage applications are processed through the National SIRA database instantly, with fraud check results available in a matter of seconds.
The change was a real milestone moment for our client. Before National SIRA real time, applications were run in periodic batches. Now, good customers can be approved faster and fraudulent applications are detected and rejected just as quickly.
The principle of ethical intelligence sharing underpins the Synectics Solutions approach to fraud and financial crime prevention. To learn more about how we – and our Finance clients - leverage syndicated insights as a powerful force for good, arrange a callback from a consultant here.
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