BFA #023 | 35 Qs to Build Your Fraud Program

Building a Strong Foundation: Unlocking the 7 Pillars of Fraud Program Development

What's happening Fraud Fighters?

Been pretty heads down this week doing a lot more doing than thinking this week. I guess that’s led me to feeling pretty tactical this week.

My pillars to building a fraud program from zero aren’t new to you but these thought-provoking questions of how I think are. Only use them if you’re ready to move your fraud program forward

Let's investigate further.

Read Time: ~3.65 Minutes

7 Pillars to Building a Fraud Program from 0

If we haven't met, let me share a bit about myself. I've built my career in fraud by developing fraud programs right from scratch. Throughout my journey, I've explored diverse industries and business models, gaining insights into multiple forms of abuse that businesses encounter.

To be honest, what fascinates me the most is observing how various businesses can be vulnerable to fraud.

The world of fraud is constantly evolving and poses a challenging problem that requires innovative approaches and a deep comprehension of its complexities. I have developed a strong appreciation for the significance of taking proactive measures to address this issue effectively.

Enough about me…

What were those pillars of building a fraud program I mentioned? I won’t make you dig them up. Here you go -

  1. Identifying the risks across the user journey

  2. Building a risk framework

  3. Building your fraud stack

  4. Organizing your processes

  5. Balancing fraud vs friction

  6. Building your squad

  7. Establishing alignment

Identifying the risks across the user journey

5 approach based questions to understanding the user journey to identify potential fraud points

  1. What are the top 3 stages in a typical user journey where fraud is most likely to occur?

  2. Which are the top 3 signs of potential fraud to look out for at each stage of the user journey?

  3. What are the 3 most important lessons learned from past failures in identifying fraud points in the user journey?

  4. What are the top 3 data points or statistics related to identifying fraud points in the user journey?

  5. What are the top 3 challenges most organizations face when trying to identify potential fraud points in the user journey?

Building a risk framework

5 approach based questions to building a risk framework to guide the fraud team's efforts

  1. What are the top 3 essential components of an effective risk framework for a fraud team?

  2. What are the 3 common challenges in developing and implementing a risk framework, and how can they be overcome?

  3. What are the 3 key steps in building a risk framework for a fraud team from scratch?

  4. What are the top 3 metrics to track the effectiveness of a risk framework in a fraud team?

  5. What are the 3 most important insights or realizations that teams have after building a risk framework for fraud detection and prevention?

Building your fraud stack

5 approach based questions to constructing your fraud stack with appropriate tools and technologies

  1. What are the top 3 must-have tools or technologies for building a robust fraud stack?

  2. What are the 3 primary considerations when choosing tools and technologies for your fraud stack?

  3. What are the top 3 mistakes to avoid when constructing a fraud stack?

  4. What are the 3 latest technological advancements or trends in fraud detection that could impact the construction of a fraud stack?

  5. What are the 3 benefits of integrating multiple tools and technologies into a fraud stack?

Organizing your processes

5 approach based questions to organizing processes to ensure smooth operations within the fraud team

  1. What are the top 3 best practices for organizing processes within a fraud team?

  2. What are the 3 most critical processes that need to be organized in a fraud team?

  3. What are the 3 common mistakes fraud teams make when organizing their processes, and how can they be avoided?

  4. What are the top 3 challenges that fraud teams face when organizing their processes, and how can they be overcome?

  5. What are the 3 benefits of having well-organized processes in a fraud team?

Balancing fraud vs friction

5 approach based questions to mastering the basics of balancing fraud and friction

  1. What are the top 3 types of fraud that a team should be equipped to detect and prevent?

  2. Who are the top 3 experts in fraud detection and prevention that the team should learn from?

  3. What are the 3 common mistakes made in fraud detection and prevention, and how can they be avoided?

  4. Can you name the top 3 skills necessary for balancing fraud and friction?

  5. What are the 3 most important lessons from past failures in balancing fraud and friction incorrectly?

Building your squad

5 approach based questions to developing a hiring process for assembling a skilled fraud team

  1. What are the top 3 traits to look for when hiring members for a fraud team?

  2. Can you share 3 examples of successful hiring strategies used by leading organizations to assemble their fraud teams?

  3. What are the 3 key roles that need to be filled in a comprehensive fraud team?

  4. Can you suggest the top 3 interview questions to ask potential fraud team members?

  5. What are the top 3 common mistakes organizations make when hiring for their fraud team, and how can these be avoided?

Establishing business alignment

5 approach based questions to aligning your fraud team's strategy with your overall business objectives

  1. What are the 3 key communication practices to foster alignment between the fraud team and other departments?

  2. What are the first 3 steps to align your fraud team's strategy with your company's overall business objectives?

  3. What are the 3 potential challenges in aligning fraud team strategy with business objectives, and how can they be addressed?

  4. What are the top 3 metrics or KPIs to track to ensure alignment between fraud team strategy and business objectives?

  5. How can you ensure ongoing alignment between your fraud team's strategy and evolving business objectives?

A guide, a roadmap, definitely not a test

This wasn’t supposed to feel like a test.

It was meant to be a guide, a roadmap to help you navigate the intricate world of fraud detection and prevention. The seven pillars I shared with you are not groundbreaking concepts, but rather a collection of thought-provoking questions designed to spark your thinking and propel your fraud program forward.

Remember, this is not a one-size-fits-all approach. Adaptation is key. Use these pillars as a starting point, but tailor them to your organization's unique needs and challenges. Embrace innovation and stay vigilant in the face of the ever-evolving landscape of fraud.

See you again next Friday in your inbox. Maybe I’ll be a little less tactical or maybe I’ll be just as tactical.

We’ll see what type of conversations I have next week…

​Brian

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