03/03/2021 | News release | Distributed by Public on 03/03/2021 06:31
The FICO Advisors team of consultants has just published our third COVID-19 bulletin to help banks adapt and thrive in these unprecedented conditions. Here are our observations on changing fraud patterns.
A consequence of the economic downturn is the blurring of lines between fraud and risk. It is now less clear whether a customer has obtained credit with no intention to repay for fraudulent reasons, or whether they have fallen on hard times through unemployment or other financial pressures. A review of how you define first-party fraud, treat suspicious behavior, and engage with customers is essential.
Both genuine customers' and fraudsters' behavior continues to change and adapt to a constantly changing environment. Fraud detection strategies need to adapt, too. Trends to think about include:
As shown below, these changes in customer behavior are driving changes in fraud patterns.
Want to learn more about responding to the pandemic challenge? Read our full bulletin: Coping with the COVID-19 Crisis: Adapting to the New Reality.