If you have ever had a fraud perpetrated against your card or bank account, or if you have ever been stopped from accessing your accounts or making a purchase, then you will know that this is an emotive experience. Past research has revealed that, managed poorly, as many as 1 in 5 customers who have had either a fraud or a non-fraud intervention on a certain product or channel go on to lose confidence, not just in that product or channel but, in their entire suite of services from that bank.
Increasingly, banks are beginning to realise that, managed well, an effective and efficient fraud prevention and detection approach is a key differentiator to promoting consumer confidence and advocacy. This was one of the topics we discussed on the fraud panel at the FICO Forum: The New Normal held in London on 16th November.
Effective fraud management is a key “moment of truth” in the banks’ service offerings and is even now featuring as an integral part of their advertised customer policies and charters, thereby offering a fraud service guarantee. It is for this reason that more and more organisations are beginning to turn to more sophisticated and automated means of fraud management such that risky transactions are better isolated from genuine ones, and spotted quickly so that customers can be called instantaneously to verify whether the attempt is genuine or fraudulent, even before the customer has left the store.
With seasonal shopping beginning to reach fever pitch now, more than ever, consumers are looking for timely and effective fraud prevention and service assurance.