According to Javelin Strategy & Research, fraud-related losses totaled $16.9 billion in 2019, an increase of $3 billion from 2018. Fraudsters are becoming more sophisticated in the ways they operate and target businesses and consumers alike. In order to stay ahead of them, you need a multilayer fraud management strategy that will help identify and prevent fraud before it happens.
Employee Training
Your employees are the first line of defense against fraudsters. They need to be properly trained on how to spot suspicious activity and know what protocols to follow if they do come across something suspicious. Have regular training sessions on different types of fraud and make sure your employees know how to report anything suspicious.
Know Your Customers
Make sure you have a process in place for knowing your customers. This can include KYC (know your customer) checks for new accounts or customers that you don’t have a history with. This helps to ensure that the person or business is who they say they are and that there is no fraudulent activity associated with them.
Data Protection
Data protection is crucial in today’s digital world. Make sure you have processes and security measures in place to protect your customer’s data. This includes things like encrypting data, having a secure network, and investing in data loss prevention software.
Continuous Monitoring
You can’t just set up your fraud prevention measures and then forget about them. You need to continuously monitor your systems for signs of fraud and make sure that your employees are following the proper procedures. Set up alerts so you can quickly spot any suspicious activity and take action accordingly.
A multilayer fraud management strategy is the best way to stay ahead of fraudsters. By having proper employee training, knowing your customers, protecting customer data, and continuously monitoring for signs of fraud, you can help prevent fraud before it happens.
Comments