Card fraud is one of the most severe threats facing the financial community. In one year alone, financial institutions lost a whopping $9.47 Billion to card fraud. Having your card portfolio infiltrated in this manner can cause serious damage to your reputation and your customer relationships.
However, your institution does not have to fight off fraud alone. The key is to leverage specific data to identify fraud trends and write decision rules based on those insights. In today's conversation, we will talk about the five key reasons you need data-driven rules to protect your institutions and it’s customers from card fraud.
Card authorization systems provide protection for the consumer but are limited in the protection it offers the financial institution. For example, the system is effective if a card has been reported stolen. However, what if a consumer's card numbers have been compromised? The right decision rules can identify suspicious activity based on the cardholder's information and history. Then, rules can be written based on that insight and prevent fraudulent transactions from taking place.
Decision rules are only as effective as the data they are backed by. Data is only effective when it is based on real-time fraud occurrences. The more data you have, the more effective your rules will be. Therefore, it is paramount that your decision rules tap into the latest fraud trends. These trends include but are not limited to regional activity, specific merchant code categories, or dollar ranges. These insights help write the kinds of rules that prevent fraud from contaminating your card portfolio.
All financial institutions experience fraud across their card portfolio. However, the issues you face will differ from the credit union across town. The great thing about data-driven rules is they can be written based on your own historical data. As a result, the right software can quickly analyze your entire portfolio, identify common fraud threats, and write effective rules based on the insights.
There is a vast difference between managing the fallout of a data breach and preventing it from occurring in the first place. The key benefit of rules is their ability to identify and prevent fraud before it impacts your customers. When you leverage the power of automation, you can analyze millions of transactions in a matter of minutes and understand where the real threat lies. Then, you can write rules based on these insights that protect both your customers' cards and your institution's reputation.
The beauty of decision rules is that they do not replace what you are already doing. Implementing data-driven decision rules does not mean you need to stop what's already working. Instead, these rules are intended to enhance your existing strategy to reduce fraud across your portfolio significantly. Best of all, rules can be written based on your institution's unique long-term strategic goals.
Since 2013, Rippleshot has delivered innovative solutions to your complex card fraud problems.
Rules Assist is our signature product that taps into the power of automation and machine learning to analyze data and trends to write the types of rules you need to fight fraud proactively.
If you are interested in learning how our solutions can keep your institution and its customers safe and secure, please click here to book a free demo.