3 Ways Financial Services Can Reduce Fraud With Data

A report by UK Finance reveals that financial fraud losses totalled to £844.8 million in 2018. This was a 16% increase from 2017. However, research conducted by the Association of Certified Fraud Examiners suggests organisations using proactive data monitoring can reduce fraud loss by an average of 54%.

With that said, find out below three ways in which your business can reduce the risk of fraud with data:

1. Payment Validation

In Financial Services, the most frequently reported type of crime is consumer fraud, measuring at 56% according to figures from PwC. Additionally, cybercrime also ranks highly at 41%.

If your organisation deals with high volumes of monetary transactions, using payment validation software will help you reduce the risk of fraud with correct data so you can avoid erroneous payments. Checking data at the point of entry will also help you save time and money with quick and accurate capture of payment details within your internal systems.

2. Address Verification

Fraud costs UK businesses an astounding £85 billion per year. Something as simple as verifying a person’s identity through an address and postcode finder can significantly reduce the risk of losses due to financial crime.

The Royal Mail Postcode Address File (PAF) contains the UK data of 30 million postal delivery addresses, 1.8 million postcodes, and 1.4 million business names. Using address validation that is powered by PAF will help you correctly identify your customers, thus improving fraud prevention.

3. Additional Datasets

26% of respondents to a survey said having accurate data was one of their biggest challenges when it comes to making use of big data. 41% also claimed no one was responsible for data management within their organisation.

Outsourcing an address validation solution and purchasing additional datasets, such as Multiple Residence and Not Yet Built, will greatly reduce the risk of fraudulent activity with the addition of more detailed address data options. These datasets hold an additional 800,000 and 500,000 records respectively, making online transactions much easier as well more efficient mail delivery.

To find out more about Hopewiser’s trusted address verification software, check out our solutions on our website or contact us below: