Create a Fraud Detection Strategy that Aligns with Organizational Goals
Payment fraud is a persistent problem in digital channels. Unfortunately, many organizations lack a coherent strategy for detecting and mitigating fraud. Each of the many stakeholders across a variety of teams impacted by fraud can have different, and sometimes opposing, requirements for any fraud detection strategy.
The result is a siloed approach rather than a cohesive, holistic solution. When there’s no common framework, the fraud detection strategy can be ineffective and may not align with organizational goals.
A better approach is to have the security and risk management leaders responsible for identity and access management work together on solving the fraud detection problem. They should seek to accomplish the following goals:
- Demonstrate leadership in this space by defining a clear stepwise pathway to move from fraud
being managed by disparate stakeholders toward a commonly agreed-on and progressive
fraud detection strategy.
- Lead their organization to think about fraud more broadly than any single business unit can by
creating a cross-functional team that identifies the challenges and requirements faced by the various stakeholders. The group needs to collectively recognize and understand their disparate agendas and seek solutions that can work for all of them.
- Develop a framework that quantifies the different ways that fraud impacts the organization. Determine how much to invest in detecting and preventing fraud. Then create a total-cost-of-fraud model by taking a holistic approach and aligning this view with organizational goals to determine tolerable fraud rates. The solution to fraud detection must ultimately strike a balance between business growth and security.
- Be forward-thinking. Rather than viewing the creation of a fraud detection strategy as a singular project with a beginning and end, define a path forward to ensure that the strategy evolves with changing organizational needs. Take all stakeholders along on the journey to cross-functional alignment for fraud detection.
Want to know more about creating an effective payment fraud detection strategy at the organizational level? Request the Gartner Report.