5 Tips for Better Online Fraud Detection RFPs

A request for proposal (RFP) to potential fraud prevention solution vendors is a best practice. RFPs provide more focus and clarity into the solutions you’re considering and offer insight into the questions that matter most. Here are some tips to help you get the most from the RFP process to support better decision-making:

1. Understand the Role of an RFP

Before submitting a call for RFPs, it’s important to first understand the role and value of the process. An RFP isn’t designed to deliver a final decision. Rather, each RFP should give you an easy way to organize information about each fraud detection vendor and solution and make it easier to compare your options. It streamlines the exploration process so that you can focus on the details that matter and avoid being distracted by less important details.

2. Gain Insight from the Right Perspectives

Choosing a fraud detection solution impacts multiple stakeholders, from fraud and risk teams to a company’s top-tier business leaders and even customer service and marketing. During the RFP process, it’s best practice to get insight from each of these perspectives and see how a solution supports their priorities and objectives.

3. Align Fraud Detection Solutions to Desired Business Outcomes

Your fraud detection solution should deliver value to your organization. But what does value look like? How will you calculate ROI? Can a solution support these business outcomes?

This is an important piece of the decision-making puzzle, as not all fraud prevention solutions are created equal. For example, one solution might be ideally suited to address payment fraud detection but might not be as comprehensive as another option. Start with your key business outcomes and work backward to ensure no gaps in defense.

4. Focus on KPIs that Matter

Deciding how a fraud prevention solution will fit within your ecosystem means knowing how you will measure the success of your new tools. There are lots of ways you can measure the productivity and effectiveness of a fraud solution. Depending on your business and the desired outcomes, some KPIs might matter more than others. Some of the most essential KPIs include:

• Auto Acceptance Rate
• Auto Reject Rate
• Manual Review Rate
• Fraud Rate
• False Positive Rate

Understand not only the KPIs that indicate an improvement in fraud prevention, but also how they support a more profitable business.

5. Differentiate Between Fraud Detection Functions

When reviewing multiple solutions, the lines between individual features start to blur. Ask probing questions to uncover the layers of what makes each function unique. Have vendors specify how those features and functions work to support your desired KPIs and business outcomes. Using an RFP template with ready-made questions can help guide this exploration.

What else should go into a helpful RFP? We’ve expanded the above tips and other insights in our new ebook, Evaluating Fraud Prevention Vendors: Best Practices for a Killer RFP + Bonus Template. Download the RFP and Template today!