With an estimated 5% of revenue lost by organizations to fraud each year1, the main purpose of a Fraud Operations (“FraudOps”) group is 1) to prevent fraud and bad actors from infiltrating the company and its products, 2) detecting fraud and bad actors should the prevention methodology fail to catch it, and 3) respond to the fraud and bad actors to ensure the activity stops and losses are reduced while also identifying the “how” and “why” of the fraud to prevent it from occurring again.

To accomplish this, FraudOps needs to work seamlessly with multiple other departments as well as create innovative ways to prevent and detect fraud through automation, 3rd party technology implementations, and robust processes. These can be categorized into two main groups- strategic inputs which are forward thinking, scalable, innovative, and solve for long term problems, and operational inputs which are how you make the gears turn and work. Through all these processes, key performance indicators (“KPIs”) are used to measure the program’s health and longevity as well as appropriate returns on investments (“ROIs”).

Open Full Document Here:

Fraud Foundation- Christopher Knight