Combating Fraud and Data Breaches: End-to-End Strategic Management Insights
The massive increase in compromised data over the last several years impacts all parties involved in the process – including consumers, merchants, and the financial institutions that issued the credit or debit card. Financial institutions are impacted in the form of fraud losses, increased operational expense associated with managing the fraud increase and reputational damage.
However, with the appropriate operational risk controls and processes in place, we have found that organizations are able to effectively manage this risk. Upon a data breach becoming public, financial institutions are often the first point of contact from the customer. Being prepared to handle the increased call center volume and respond appropriately and confidently to customer questions about the breach are essential for managing reputation. For large breaches, proactive customer outreach can help institutions control the messaging and restore confidence among their customers.
Fraud strategy teams must also react swiftly to effectively manage risk that may stem from a significant breach event. By immediately analyzing recent claims to identify related claims (which may include looking across products), organizations can quickly identify populations that need to be monitored or that need to be closed and re-issued. A swift reaction to higher than normal fraud levels can enable remediation efforts to carefully balance customer experience and fraud losses.
The items highlighted above are just a few examples of topics that are covered in depth in the white paper titled, Combating Fraud and Data Breaches: End-to-End Strategic Management Insights. Other topics that are covered in detail include consumer and merchant impacts and mitigation strategies, and how financial institutions can detect or prevent fraud prior to becoming aware of a breach event by implementing effective strategies, enabling strong fraud servicing and claims operations and robust MIS and reporting. Download the full white paper to read more.