Practical Fraud Prevention

Chapter 4. Fraud Prevention Evaluation and Investment

Money makes the world go round…

John Kander and Fred Ebb¹

The bread and butter of fraud prevention is in research identification (through fraud analysis, modeling, reverse engineering, etc.) and mitigation—and balancing that process with avoiding friction for good customers as much as possible. But a whole framework of systems, tools, and departmental investment is needed to support those efforts, and that’s what this chapter focuses on.

The more care you take to ensure that your framework is the right fit for your team’s needs and your company’s structure, the more effectively it will support your fraud prevention work.

Moreover, it’s important to position the fraud prevention department appropriately within the wider organization. Your team will work best if it has close collaborative relationships with various other departments, and you’re more likely to get the resources you need if management understands your work and what you do for the company. Even though it’s only tangentially related to the crux of the job, it’s far more important than many teams realize, and it’s as important to invest in these relationships and educational efforts as it is in analysis and research.

Types of Fraud Prevention Solutions

Fraud prevention solutions are not a one-size-fits-all kind of discussion. There’s little point in arguing about which is the “best” fraud prevention solution or tool. All the options have different advantages and ...