Financial crime moves and evolves quickly, requiring a proactive approach from financial institutions. In this blog, James Dodsworth from Thistle Initiatives — a leading compliance consultancy, shares a handy checklist of actionable tips and tricks to protect against APP fraud.
This guidance, drawn from the e-book Inside the Scam: How APP Fraud Fits into the Fraudsters’ Playbook, covers three key areas: processes, technology, and people. Let’s get into it.
Practical steps to protect your customers against APP fraud
Process solutions
Assess your fraud risk Start with a thorough business-wide risk assessment. This involves understanding your customer base, the geographic areas you operate in, and how your products and services are delivered. Fraud risks differ by market, and assessing them helps you tailor prevention measures effectively.
Review and refine your policies Regularly update your anti-fraud policy and procedures to address new threats and regulatory changes. This ensures that your frameworks remain relevant and robust.
Enable seamless communication across teams Fraud prevention efforts are often siloed within institutions. Bridging the gaps between teams—such as onboarding, fraud monitoring, and AML—ensures a more cohesive and effective response to fraud attempts.
For more tips on protecting against APP fraud, get the e-book from Salv, Thistle and We Fight Fraud today.
Technology solutions
Strengthen identity verification Fraud prevention starts at onboarding. Use advanced tools to verify customer identities, detect deepfakes, and analyze device behavior for suspicious patterns.
Enhance transaction monitoring Monitoring solutions should align with your specific risks. For example, organizations targeting younger customers or students should focus on identifying money mule activity. A mix of rules-based systems, machine learning, and AI is often necessary to detect complex fraud schemes.
Leverage data-sharing initiatives Stay informed about the latest fraud typologies by participating in secure data-sharing networks and industry forums. Collaboration can provide early warnings about emerging threats.
People solutions
Train your teams Equip your monitoring and customer service teams with the knowledge to spot red flags, understand evolving fraud typologies, and communicate effectively with potential victims. Engage with your customers Educate customers about common fraud tactics through campaigns and in-app alerts. Asking targeted questions about unusual transactions can help flag risky activity before it escalates.
Summary
Fraud prevention requires a multi-faceted approach, blending strong processes, advanced technology, and well-trained teams. Thistle Initiatives’ expert advice underscores the importance of staying vigilant, proactive, and adaptable in the face of evolving threats.
For a deeper dive into the tactics criminals use and how to combat them, download our e-book Inside the Scam: How APP Fraud Fits into the Fraudsters’ Playbook. This resource shows you how to think like a fraudster and see how criminals use APP fraud as part of their playbook.