- Bad Fraud Advice Blog
- Posts
- BFA #005 | "Don't You Already Have a Tool?"
BFA #005 | "Don't You Already Have a Tool?"
Not all fraud is the same. So why would you treat it the same?
What's happening Fraud Fighters?
In today's edition, we uncover how not all fraud is the same.
So why would you treat it the same?
Spoiler: you shouldn't.
Read Time: ~2.9 Minutes
"Don't you already have a tool for that?"
I mean, come on, if only it were that easy!
Long story short - no.
Wouldn't it be nice if that was an acceptable response?
It matches the same amount of effort that goes into understanding why fraud fighters need additional tools.
But we can't.
It seems like everyone is trying to sell us some new solution or technology that's supposed to solve all our fraud problems. But the truth is, fraud has been around for centuries and there's no silver bullet to stop it.
That's the point right there.
There is no silver bullet.
Fraud is like that one roommate who never leaves, always causing trouble and taking your things without asking. And guess what? There's no easy solution to make them go away.
We can't just wave a magic wand and poof no more fraud! We have to put in the work and use multiple tools to make sure our business is protected.
The Problem
You put together your business case and your slide deck.
You've looked yourself in the mirror and told yourself "YOU'VE GOT THIS!"
The days, if not weeks, that have gone into this presentation is all coming down to this one meeting.
You share you screen and start rolling through your rehearsed presentation.
Everything is going as planned, until you get to slide 4.
"Let me stop you there."
Ugh.
"I'm not convinced that using multiple fraud tools will solve all of our fraud problems. There's always a risk of these tools generating false positives or causing other operational issues, which could actually make things worse. Plus, integrating multiple tools could create a technical headache that we're not prepared to deal with."
You didn't even get to show them the funny meme slide - let alone break down the differences between identity theft, payment fraud, and account takeovers.
If they just let you finish, you'd be able to help them understand, the difference between them all.
And show them why building a fraud stack is the answer and why relying on one single tool is making your job harder.
No Leadership support. No new tools.
No new tools. Same fraud goes undetected.
Same fraud goes undetected. Same daily migraine.
But sometimes, the higher-ups just don't understand. They think we're just trying to spend more money and add more work to their plate. But the truth is, using multiple fraud tools is the key to success. It's like a puzzle, every piece is important, and without them all, you can't see the whole picture.
Map the Journey
We've got to try something different, and we have to put it in their world.
I use the Black Hole Test.
The first thing I do is map out the customer's entire journey for your business.
I mean everything - from traffic, to account creation, to login, to payment, to platform usage, to content creation, to withdrawal, to the happiest customer ever (...or chargebacks/returns).
Write down which tools and data give you visibility at each checkpoint in the customer's journey.
For each step of the customer journey, circle the step which you and your team do not have sufficient visibility.
Every circle represents a black hole.
What do you think happens in that black hole?
That's where the fraudsters thrive.
Time to Educate
Now back to Leadership thinking all fraud is the same.
We know it's not. But it's clear we need to do some serious education for leadership. We have to show them how it's not all the same and how relying on one tool is like trying to use a screwdriver to fix your car engine.
Mapping out the entire customer journey helps us better show the different types of risk, controls we have in place, or lack of controls.
Ideally we're able to show the impact of those different risks. It's like teaching them a new language, but instead of words, it's fraud, and fraud is a foreign language to them.
We have to make it far easier for them to understand the different between an account takeover and a synthetic identity or credit card testing.
Developing a comprehensive fraud strategy involves more than just a single checkpoint. Emphasizing the importance of understanding the unique risks and challenges associated with each type of fraud will be the difference. Simply over-relying on a single solution will result in incomplete protection.
I believe that the best way to combat fraud is through education and awareness. We can't rely solely on technology to protect us. We need to teach people how to recognize the warning signs of different types of fraud.
So let's keep on fighting, one black hole at a time.
See you again next Friday in your inbox.
Brian
Reply