Agility FinanceTech: Smarter Infrastructure & Technology Management for the New FS Organization. Sponsored by IBM.

Posted by Dr. Paul-Gerhard Haase

As discussed in the webinar analytics and the underlying single source of truth play a major role in fraud detection. As a result, most vendors of anti-fraud solutions focus on the detection algorithms and how to adopt an integrated data management strategy to optimally feed these. This, however, is not the complete picture of an integrated fraud strategy. Over a long time the appropriate processes after the actual identification of an alarm have been neglected resulting in a tremendous potential to save efforts, improve quality and last but not least increase speed around fraud detection and appropriate response measures. Case Management is the key word dealing with the processes once a case has been created out of a single or multiple alarms. In that sense appropriate quick response measures for a case generated in the Case Management system and their effectiveness are the final outcome of an anti-fraud platform. They eventually determine whether a fraud is dealt with in a proper and timely manner. The technical handling of a case is one aspect the process a case runs through is the other. This process can be automated, partially automated or manual. The exact modelling of that process is independent from the system used and needs to be closely aligned with the organization’s need. Is has to have some feedback loop into the detection engine itself to avoid “system blindness” mentioned before in this forum. The service around that process is part of IBM’s Integrated Risk Management enabling financial institutions to optimally utilize their resources for an optimal outcome.