4 Ways Businesses Can Better Handle Fraud Risk


At this point, it’s not a matter of if a business will be victimized by fraud; it’s a matter of when. That air of inevitability, though, doesn’t mean company leaders should sit back and let it happen to them.

With every dollar meaning more than ever these days amidst rising inflation that’s hitting levels not seen in over 40 years, convincing someone in the corner office to spend the money it’ll cost to limit fraud exposure isn’t a simple task — but it’s a necessary one as bad actors become more sophisticated every day in getting the info they want.

The first step in developing and launching a modern anti-fraud model, according to “Reframing Anti-Fraud Strategy: Developing a Proactive Approach to Fraud Risk Management,” a PYMNTS and TreviPay collaboration, is to understand its key components.

Here are four important requirements to implement an anti-fraud strategy at a company or financial institution (FI) of any size, according to PYMNTS research:

Automation. Relying on manual anti-fraud tactics often results in poor fraud monitoring outcomes, due to variable processing speeds and human error.

Integrated payment card and identity verification. When teamed together, payment card and identity verification block fraud attacks even at their most complex iterations, which can include synthetic identity creation (when legitimate consumer information is compiled to commit fraud) and fraudulent card-not-present (CNP) transactions.

Compliance management and reporting features. Organizations need true visibility across transactions as well as effective tools to speed or automate anti-fraud and compliance monitoring efforts. A single system that provides multichannel visibility and transaction management can help businesses streamline compliance and anti-fraud efforts.

Scalability. A cloud-based solution can allow businesses to scale anti-fraud and identity verification processes as needed when transaction volume increases. This protects user experiences from interruption and allows businesses to maintain strong antifraud protocols as they grow.

For more information, download “Reframing Anti-Fraud Strategy: Developing a Proactive Approach to Fraud Risk Management.”