With Fraud, Collaboration Trumps Competition
During various speaking engagements last year, I was repeatedly asked by financial institutions about how their peers were dealing with large payment card compromises. I decided to form a working group of issuers to explore this topic further, with the intention of publishing results. I had no idea that I would end up with more than 30 volunteers sharing useful viewpoints and best practices for managing card compromises. Who knew there would be so much to discuss?
This subject matter was so engaging that I also conducted an informal poll, asking a few hundred financial institutions: “What is the largest problem your institution faces when managing a card compromise?” An overwhelming 42% of respondents indicated that their challenge was determining when to block and reissue payment cards once they’re identified as being part of a compromise. Overall, the poll responses supported what I was hearing from other issuers, essentially: “We need to have a greater understanding of what the industry is doing to manage card compromises.”
Full results from both the poll and the working group best practices appear in FICO’s newly published Insights white paper, entitled “Managing Card Compromises from the Issuer’s Perspective” (#60; you'll need to register to download). The paper shares insider tips that help to identify the fraud, manage the risk and communicate with the customer.
One secret to managing card compromises is fostering greater industry collaboration. Indeed, our tiger team of volunteers already participate in the monthly webinar “Combating Fraud through Peer Communication.” As the title implies, hundreds of financial institutions meet online to share the latest information and updates on electronic financial crime and fraud scams.
Most of our monthly “Combating Fraud” attendees also collaborate through our online fraud forum www.fraudalertnetwork.com. This community is for bankers, credit union professionals and law enforcement officers to discuss a variety of fraud-related topics in an environment designed to foster communication and support among peers. Members often tell us that this forum is the cornerstone of their day, and they think of it more as a work tool than simply a website.
If you are interested in keeping up-to-date on fraud trends, I invite you to register as a member of the fraud forum website and please join us at our next “Combating Fraud” webinar. If you are unable to make any of the live web meetings, please note that each event is archived on www.fraudalertnetwork.com.