Actionable Insights From APT's Retail Practice

Financial Services Organizations Leverage Analytics to Fight Account Fraud

May 11th, 2017 | Posted by APT in Financial Services

Proactively combating account fraud is currently top of mind across the financial services industry. In addition to changing sales incentives and investing in employee education, banks are increasingly investing in advanced analytics to root out instances of fraud.

As application volume has increased substantially in recent years, one leading U.S. issuer noticed that the number of non-authorized accounts was growing proportionally. Recognizing an opportunity to strengthen its fraud detection process, the issuer used APT’s Test & Learn® software to build propensity models that determine a new account’s likelihood of being fraudulent.

The tool enables the issuer to isolate common characteristics of fraudulent account creation, including:

  1. Patterns in card usage
  2. Trends in banker behavior
  3. The channel from which the account originated

“Within a month of account opening, we can identify roughly 90 percent of fraudulent accounts from evaluating just 15 percent of the population,” said the issuer’s Head of Cards. “That level of precision allows us to take a proactive position rather than a reactive position, helping us to better serve our clients and protect against fraud.”

To read more about how this leading U.S. issuer worked with APT to proactively identify and mitigate account fraud, click here.

Be Sociable, Share!

You can follow any responses to this entry through the RSS 2.0 Both comments and pings are currently closed.