Last week, a group of us came together for a formal internal forum where we had the opportunity to compare notes with colleagues, hear updates on the challenges clients are facing and brainstorm solutions to client business problems across the discipline areas of analytics, fraud and software.
As usual, fraud prevention and fraud analytics were key areas of discussion but what was also notable was how big a role compliance is playing as a business driver. First party fraud and identity theft detection are important components, sure, but as the Consumer Financial Protection Bureau (CFPB) gains momentum and more teeth, the demand for compliance accommodation and consistency grows critical as well. The role of good fraud management is to help accomplish regulatory compliance by providing more than just fraud risk scores, it can help to:
- Know Your Customer (KYC) or Customer Information Program (CIP) details such as the match results and level of matching across name, address, SSN, date of birth, phone, and Driver’s License.
- Understand the results of checks for high risk identity conditions such as deceased SSN, SSN more frequently used by another, address mismatches, and more.
- Perform a check against the Office of Foreign Asset Control’s SDN list and the details of any matches.
And while some fraud solutions out there make use of these types of comparisons when generating a score or decision, they may not pass these along to their customers. And just think how valuable these details can be for both consistent compliance decisions and creating an audit trail for any possible audits.