Remote Banking & Account Take Over Fraud Solution

Project Overview

A tier-1 global bank was experiencing heavy losses due to fraud on remote banking from 1st Party and 3rd Party. Matrix-IFS was brought in to evaluate the current state and create a solution to improve monitoring capabilities that will help reduce fraud losses.

Project Solution

For 1st Party Fraud, the Matrix-IFS team performed a tuning and score calibration of the existing internal scoring model,  transforming the score scale into 8 segments that represented the risk of check return in a more efficient and accurate manner. Based on the new score calibration the team created a set of Policy Manager rules to monitor activities for mobile Check Deposits.

For 3rd Party Fraud, our fraud team created a 2 stage solution:

Step 1 – Matrix-IFS created a set of profiles utilizing all available customer data & geographical data sources for new account opening events. The result was a set of 36 unique attributes which provided a 360° view of the cross-channel picture of each unique entity who opened a new account.

Step 2 – The bank requested to utilize the cross-channel information in order to improve monitoring and control on new account opening events. The Matrix-IFS team created a set of rules, utilizing the profiled data, improving monitoring capabilities and controls of the operation teams for out of pattern suspicious behavior and potential Account Take Over cases on New Account opening events.

Matrix-IFS’ Value

  • Matrix-IFS delivered a fraud solution that cut down the number of frauds perpetrated and subsequently losses that were associated with remote banking fraud.
  • The method used to combat 1st Party Fraud had proven to be a highly cost-effective solution, allowing significant reductions in fraud losses and lowered the false positive ratio.
  • The approach that was taken against 3rd Party Fraud had a major contribution in slowing down the activity of a fraud ring based in California & Florida.
  • The user profiles developed based on multi-channel data sources, significantly increased the institution’s fraud monitoring capabilities

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