Fraud Detection and Prevention Effective and efficient Hunt for moving Targets
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Old News: A high Chance to get caught is still the best Deterrent to Crime.

In the context of banking transactions this little piece of wisdom means that a big part of fraud prevention comes with fraud detection.

Effective detection in cheque fraud is almost all the time a question of dealing with numbers. In opposite to what seems to be obvious, the most important number in cheque fraud detection processes is the percentage of items that can be quickly identified as no- or low-risk. The higher that number, the better a fraud detection team can focus on the truely suspicous items.

Microscope and other forensic Tools - not a regular Workplace zoom Microscope and other forensic Tools - not a regular Workplace

zoom image: Microscope and other forensic Tools - not a regular Workplace

Microscope and other forensic Tools - not a regular Workplace

While forensic document examiners use various tools to trace a persons handwriting or signature on paper, a fraud analyst or signature verification operator in a bank has neither the necessary paper available nor the time to do such intense investigation during the day-to-day operation. The microscope has no role in regular signature verification or fraud detection operations.

Fraud detection in a banking context means finding traces of fraudulent activity in images or transaction data that help narrow down the search if combined in the right way. Only on those items, the operators take a closer look to find information that either confirm or disprove that suspicion. But again, neither vast analysis time nor paper evidence can be made available for this process.

The right tools are crucial for effectiv and efficient operations. The typical evidences a forensic expert could extract from paper documents are eventually of no relevance in a cheque processing environment. Here a daily operation of thausands to millions of cheques must be handled and the search is not for evidence but for risk indicators that raise suspicion. On top of that, paper must not and often cannot be the means for fraud detection anymore. Image based processing and cheque truncation is in full advance around the globe. Forensic tools are at loss without paper. A different process has to be followed.

The FraudOne Solution Package Family bases all analysis on what is available: image, data and account history and profile. From there, risk indicators are extracted for each item through technologies selected to match the specific fraud exposure of a bank. After combing the full volume for those risk indicators and subsequently consolidating the marked items intelligently to determine the true risk items, the fraud analysis process will evaluate the remaining suspects to nail down thoise that can be confirmed as fraud. The legal process and evindence collection is a separate, detached process. For the fraud detection process, preventing the payment of fraudulent items is key above all other goals.