Fraud Prevention Strategies to Prepare for the Future

Fraud Prevention Strategies to Prepare for the Future
While companies have largely adjusted to the new normal for security management, here are some tips for combatting fraud, post-COVID.

The global health crisis has impacted businesses and revealed challenges in the way they identify and treat fraud risk. According to the FTC from January to early October 2020, consumers reported losing a total of more than $156 million to COVID-19-related fraud. 


Fraud threats will likely continue to rise across the globe as fraudsters take advantage of the pandemic and rapidly shifting economic conditions. In addition, Experian's annual Global Identity & Fraud Report found that nearly three in five businesses had seen an increase in fraud in the past 12 months prior to the start of the current economic turmoil and 57% of businesses had reported higher fraud losses associated with account opening and account takeover.


As organizations manage the current economic volatility, they also need to be thinking of how they'll position themselves for success when the environment improves. Implementing proper fraud prevention strategies can help reduce future losses to their portfolios. Below are ways that organizations can proactively mitigate increasing fraud risks.


Understand and Categorize the Type of FraudThe ability to accurately identify individual fraud types is important as organizations experience an unprecedented economic period combined with the transition to digital. Through accurate fraud detection models and proper identification, organizations can apply the correct treatments to maximize the effectiveness of their fraud response, since the treatment for first- and third-party fraud is different.


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