8/8/2019 Protecting the Enterprise: Enterprise Fraud Strategy
Vision and Reality (Fraud Management Institute/Executive Su
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Protecting the Enterprise: Enterprise Fraud Strategy Vision and
Reality
Financial institutions o all sizes are discovering that they
need to rethink their
approach to managing raud. The rapid expansion o new products
and new
channels or customer access has opened up new opportunities to
satisy customer
needs. However, this expansion has also opened up the
opportunity or raud thatcuts across an institutions product lines,
channels and even geographic regions, as
raud rings attempt to exploit any vulnerabilities they can
fnd.
To complicate matters urther, raud rings are growing in size and
sophistication every
day. They are now capable o launching sophisticated wide-scale
attacks, possibly
with the tacit approval, or even the active cooperation, o a
nation state.
The need to fght raud on this scale is driving many frms to
reorganize their raud
management eorts around an enterprise raud strategy that
coordinates raud
detection and interdiction eorts across the entire
organization.
This white paper discusses both the vision o enterprise raud
strategy thatmany institutions fnd so attractive, and the reality
they ace in implementing an
enterprisewide strategy eectively. It is based on interviews we
conducted with
fnancial institutions ranging rom $50 billion to more than $1
trillion in assets, as well
as government agencies. Key conclusions o this study are:
Desireforincreasedeffectivenessincombatingfraudistheprimarybusiness
driver or most organizations. Companies want a holistic view o
all their raud
threats so they can ocus on the threats that pose the greatest
risk to the
enterprise as a whole.
Atthesametime,rmsareseekingincreasedefciencyfromanenterprise
raud strategy, in the orm o integrated data platorms, shared
resources, and adedicated, well-trained sta.
Organizationsareplanningforavarietyofapproachestotheirinternalstructure
under an enterprisewide strategy. Where easible, they preer to
centralize all
eorts into a single unit under central control. However, large
dierences between
global regions and/or lines o business can make this approach
impractical. In
those cases, the preerred approach is to pursue centralization
at the level o the
region or line o business.
Organizationsfaceseveralconceptualchallengesindevelopingthebusiness
case or an enterprise raud strategy. They must be sure to make
an accurate
assessment o uture raud risks, including the lie insurance value
o being ableto combat true enterprise-level risks. They must also
be able to identiy the many
and varied savings that result rom centralizing and coordinating
their raud eorts.
8/8/2019 Protecting the Enterprise: Enterprise Fraud Strategy
Vision and Reality (Fraud Management Institute/Executive Su
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Protecting the Enterprise: Enterprise Fraud Strategy Vision and
Reality
Oftheseconsiderations,thequalityofthebusinesscaseisparamountfordecision
making over the next ew years, because it sets the ramework or
managing
expectations,evaluatingresultsanddeterminingsuccess.Organizationsarelikely
to seek out vendors who can help them accurately assess uture
risks and build abusiness case based on the solid experience o
internal proo o value eorts or
peer group analysis.
To download the entire report, please go to:
www.sas.com/fraudresearch.
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