Case Management Software – The Backbone of Your Digital Fraud Prevention Strategy

What are digital fraud investigations and case management?

Sadly, all modern businesses with online operations face fraudulent activities. To protect their customers and prevent financial losses, they often employ automated detection mechanisms that can block many fraudulent transactions and events. However, human intervention is also required in cases where there’s uncertainty or where an in-depth analysis of a transaction or event is required.

Fraud investigations are the processes to uncover and evaluate the evidence of suspected or known fraud attacks. At DataVisor, we see many different fraud attacks from many different industry sectors, but the common points are always the same: We defend our customers from attempts to obtain money, goods, or services by deception. 

Some of the firms that we work with prefer to use the term fraud case management because it implies that suspected attacks need to be investigated, but also acted upon (i.e. managed). We help teams gather information and act on it to protect an enterprise and its customers by blocking transactions, challenging user authentications, freezing accounts, and implementing other defensive measures.

What do fraud analysts do?

Investigations are usually performed by fraud analysts with the collaboration of different members of the risk management team. The skill sets required to fight fraud might vary between functions or industries, but certain qualifications like strong observation capabilities, an analytic mindset, deep understanding of fraud risks, and a tendency to ask the right questions are common across the board. 

In particular, fraud analysts have a lot in common with detectives. In true holmesian fashion, they must be highly perceptive and employ deductive reasoning to uncover the most creative fraud instances.  

What is case management software?

Modern fraud case management software (CMS) is perhaps the most visible component of the tech stack when it comes to empowering fraud analysts and broader investigative teams. Simply put, CMS is a digital interface that enables fraud analysts to gather all the pertinent information about an event under review and act on it. 

According to Aite-Novarica Group, CMS can provide tremendous operational efficiency gains for firms, motivating firms to acquire CMS products that have a wide variety of features:

• Alert management 
• Investigation infrastructure
• Workflow mechanisms
• Management reporting
• Compliance features
• Fraud loss analysis 

Best practices for digital fraud investigations and case management

Having a CMS that covers the basic components is a good step in the right direction, but successfully uncovering the truth requires a comprehensive strategy. Great case management practices stand out because when they are designed to cover the following principles:

1. Integration
2. Visibility
3. Simplicity
4. Prioritization
5. Explainability
6. Quick and effective actions
7. Operational efficiency and analytics

For a full explanation of these principles and how to implement them in your organization today, check out the full Dummy Handbook on Digital Fraud Investigations here.

Conclusion

At DataVisor, we are passionate about our mission to provide fraud fighters with the most accurate, insightful, and complete set of tools available to stop fraud.

Case management is an integral component of a modern fraud system and investigations are where fraud analysts add value to fraud prevention teams by dissecting and stopping fraud. Good case management practices can set up a fraud team for success by empowering rapid and effective decision making in even the most complex cases, or set the organization back by opening the floodgates on fraud and hampering collaboration.

Further reading

https://www.datavisor.com/blog/how-can-ai-fraud-detection-help-the-banking-industry/

https://www.datavisor.com/blog/how-to-make-your-rules-engine-more-powerful-by-using-advanced-features/

https://www.datavisor.com/blog/3-capabilities-of-advanced-fraud-features-that-help-your-fraud-team-adapt-to-fast-evolving-fraud/

https://www.datavisor.com/blog/defeat-fraud-how-to-deliver-continuous-protection-across-the-entire-customer-lifecycle/