Fraud Management Best Practices

"This course serves as a depository of the collective knowledge and experience of fraud managers throughout the world used to protect banks from most types of financial fraud.'' - Regional Fraud Manager for a London-based Global Bank. Course Overview This comprehensive 5-day workshop allows risk managers to understand the key fraud management strategies that can be deployed across the organization to manage the impact of fraud threats to the profitability and reputation of the business. This course will enable participants to identify, measure and manage fraud through the understanding and deployment of global fraud management best practices. These practices can be applied to counter fraud vulnerabilities for organizations that use and provide payment products, consumer lending commercial credit products and want to increase protection from employee fraud. Highlights Understand the true extent of fraud losses and identify all of the places in your organization where fraud may be hidden or underreported Be able to develop a fraud management strategy that optimizes the risk reward tradeoff between minimizing fraud losses without undue impact on the ability of customers to use your products and services Use data mining techniques to identify the root causes of fraud and develop countermeasures to manage vulnerabilities to an acceptable level Develop organization strategies that will lead to the participation and cooperation of all stakeholders impacted by fraud and contributing to the management of fraud. Learn how to develop a fraud management organization that can achieve fraud loss rates that are less that half of the industry average Know how to identify the optimal point to install the necessary fraud management infrastructure Apply this knowledge to fraud vulnerabilities from - ATM Cards - Asset based lending - Auto Lending - Brokers - Commercial Credit - Credit cards – Merchant Acquirers - Credit cards - Card Issuers - Current accounts (checking accounts) - Debit Cards - Dealer Financing - Direct Sales Agents - E-commerce - Electronic Funds Transfer - Employee Fraud - Leasing Products - Mortgage Lending - Motorcycle Lending - Vendors Who Should Attend? Within Banks: Fraud Managers Credit Risk Managers Business and Product managers concerned about fraud-loss surprises Managers responsible for: Fraud Policy Fraud Analytics Fraud Investigations Fraud Operations Fraud Reporting Consumer lending fraud losses Commercial lending fraud losses E-commerce fraud losses Electronic Funds Transfer fraud protection Employee fraud Operations Risk This course will also be of interest to fraud and credit risk specialists in Online Retail and Asset Lending Companies. Further Testimonials (5) What the course’s instructors previous clients have said about this course: ‘‘Having taken an earlier version of the course, I know it serves as a solid foundation for managing fraud in all types of financial environments: consumer lending, commercial lending, leasing and other types of financial activity’’. Senior Global Fraud Manager of a multi-national financial conglomerate. ‘‘Completing this course should be mandatory for all bank risk managers, if only to ensure that the bank’s credit policies reduce fraud attack vulnerabilities and not inadvertently increase them.’’ Chief Risk Officer, South Asia Region for a major Global Bank. ‘‘The instructor has provided my organisation with very valuable fraud vulnerability assessments and has developed and delivered very effective, bespoke risk training.’’ Chief Risk Officer for European Retail Banking at a large Global Bank. ‘‘The instructor blends experience, knowledge and use the practical case studies to provide a worthwhile learning experience to those completing his courses.’’ Head of Retail Risk Management at a major bank in Saudi Arabia. ''The fraud management concepts and lessons learned developed by this instructor are being used to train fraud managers at some of the largest banks in the world.'' Global Head of Operational Risk and Fraud Prevention at a large multinational Bank.
Day 1 Definition of fraud What it is and what it is not Impact on expenses and customer service Threat to the business Impact on competitive Fraud management strategy Mission of fraud management Data collection and analysis Portfolio management Developing countermeasures Case study: Making sense of fraud losses through portfolio analysis Credit card issuer fraud Account take over NRI (never received issuance) UFL (under the floor limit) Case study: Detecting and responding to the signs of possible fraud Credit card issuer fraud (continued) Skimming Fraud applications Cross border Case study: responding to card member disputes that may be the beginning of a fraud attack Day 2 Credit card acquirer fraud Overview of the authorization and settlement system Burst out merchants Factoring Credit refunds Cash advance Case study: Should you be suspicious of good news, especially from new merchants? Credit card acquirer fraud (continued) Data compromising Tampering with POS (point of sale device) Telemarketing fraud Redirecting website fraud Case study: Responding to data hacking attacks E-commerce fraud Definition Modus operandi Characteristics Countermeasures Case study: When does your best customer become your biggest threat? Employee fraud Major types common to all organization Warning signs Preventing and detecting Responding and seeking restitution Case Study: Is it fraud and what type of fraud is it? Day 3 Managing other common fraud methods Account take over Fraud application Fraud payment Lost stolen Current account fraud Overdraft vulnerabilities Counterfeit and altered checks Fraud early warning technology Managing through score-based warnings Case study: Which account is about to go nuclear? Direct sales agent / broker fraud What does that fraudster want? How does he / she get it? Detection through relationship manager Restitution through contract clauses Case study: Where is the fraud coming from? Mortgage sending Common fraud attacks Credit tools that prevent fraud Impact of financial bubbles Countermeasures Case study: Is it a credit loss or a fraud loss? Day 4 Fraud detection systems Fraud logs and fraud data base Understanding 'good' vs. 'bad' behavior Fraud detection system architecture Working fraud alerts Case Study: Balancing fraud protection and customer satisfaction Fraud management technology Credit card issuing system Credit card acquiring systems Debit card and ATM systems Transaction accounts Case study: Developing a strategy for working fraud alerts Auto and motorcycle lending Where is the value? Points of fraud vulnerability 12 common fraud scams Countermeasures Case study: When fraud protections become a competitive disadvantage Commercial credit fraud Where is the risk? Common scams and countermeasures Collusion vs. negligence Know your customer Case study: Who is looking after money? Day 5 Dealer financing and other asset-based financing Points of vulnerability Common scams Prevention and detection Recovery and deterrence Case study: How much can you lose? Vendor fraud Commonly used vendors Fraud vulnerabilities Countermeasures Recovery and deterrence Case study: Salvation through representations, warranties and the legal process Electronic funds transfer How the process works Vulnerabilities Scams and countermeasures Recovery and deterrence Case study: What are the warning signs and what do you do? Debit Cards and ATM Fraud Process overview Common scams Countermeasures Recovery and deterrence Case study: Can you steal a million dollars? Global fraud management best practices Minimum standards to best practices How to use the best practices tool Take away checklist: Best practices matrix Course summary and close