Using anti-fraud technology to improve the customer experience

Abstract

With large data breaches making headlines, consumers in the UK and other countries have a heightened sensitivity to fraud. And the numbers show that they're right to be vigilant. In the UK, ‘card not present’ fraud reached a high of £624m in 2014, an increase of £153m over 2013. Action Fraud, the national fraud reporting helpline, recorded 225,000 fraud offences in the UK for 2014, which is up 11% on 2013, and these numbers don't include online fraud. 1 , 2 This represents a volume increase of 211% compared with 2008/09, and is equivalent to four recorded offences for every 1,000 people – more than four times the rate of robbery. Financial service providers are continuously under pressure to keep the amount of false positive fraud detections low while still maintaining a high level of fraud protection. It is extremely challenging to detect fraud faster and more accurately without increasing the number of customer cards that are blocked for simple behavioural changes. But a quality customer experience is a high priority in the battle for market share and effective anti-fraud technology has a big role to play in this, explains Scott Zoldi of FICO.