The anatomy of a smart fraud prevention strategy for financial institutions
One of the main reasons that financial institutions partner with payment processing providers is because they offer technology-based solutions that can help simplify operations, generate revenue, and help attract and retain customers. However, managing the fraud mitigation process is one such task that can benefit from the payment processing relationship.
At Vantiv, when we created our OmniShield fraud suite for our financial institution partners, we approached it holistically, from a total integrated approach. Every part of the solution works in concert for the same purpose, with different parts taking on different tasks, much like a living organism. Our solution has a “brain” for decision making, a “heart” to sustain life, a “digestive system” to break down input, and “limbs” for mobility.
Looking at fraud in this manner is an unconventional approach. But if it helps you visualize the anatomy of fraud mitigation, it’s a worthwhile endeavor. Let’s take a look.
The brain is the decision maker. It takes information gathered from the senses and determines the best course of action. The brain leads the way with regard to making decisions and adapting to circumstances. When it comes to OmniShield, the brain is comprised of the staff of over 100 fraud experts. The advanced scoring system that learns cardholder purchasing behaviors and identifies abnormal card usage provides the input or sensory information that the brain uses to complete tasks. Real-time fraud scores capture data irregularities and adapt to changing customer behavior over time to better anticipate and detect fraud. The team of fraud experts address, respond, and minimize fraud, which frees up resources to focus on other areas like cardholders and increasing revenue.
The digestive system
The purpose of the digestive system is to break down the things we ingest into smaller parts and separate the nourishment from the toxins. The digestive system of our fraud solution also separates the good from the bad. It helps determine the difference between legitimate and fraudulent transactions. This allows your financial institution to continue nourishing the bottom line with good transactions by expelling the fraudulent transactions before they can damage the system.
With so many tasks at hand (pun intended), OmniShield provides your financial institution with an extra set of arms to get them all done. From chargeback processing to management of signature debit disputes and mailing letters and status reports, a solid fraud strategy needs more hands on deck. But you don’t have to supply them when you outsource part or all of your daily fraud tasks to Vantiv.
Legs are particularly useful for moving and staying agile requires movement. If your fraud strategy isn’t scalable and able to adapt to the changing environment, you won’t get very far. When it comes to fraud, rule testing flexibility gives you the mobility you need. With OmniShield, you can test in a simulated real-world environment to create a more accurate “what if” analysis and toggle a switch to move rules from test to production. With legs, you can easily move from a low-demand fraud strategy to a high-demand fraud environment with no extra effort.
In a living being, the heart pumps blood throughout the organism, from the head all the way down to the feet. The same is true of the OmniShield suite. The blood is the information that is generated, disseminated, and absorbed by the rest of the system. And this information is pumped throughout the organization by way of the fraud dashboard. The OmniShield dashboard provides a plethora of information for every aspect of your fraud strategy. From open disputes to fraud scores on transactions to card compromise alerts, the customizable dashboard tracks it all and makes it available to each department.
The complete organism
Fraud is dynamic and complex. Fraudsters are crafty and inventive. In short, fighting fraud effectively takes a complete entity, fortified with resources and technology. It makes sense to have dedicated resources to handle each piece of the complex puzzle, which isn’t always economical for a financial institution. Automating the parts that can be automated and outsourcing the rest is a solid strategy for tackling fraud. Vantiv offers solutions for every sized partner. Whether you need a little support or a totally outsourced program, Vantiv has an effective fraud solution for your institution. Contact usto learn more about how we can support your efforts.