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Posted by  in Fraud Awareness

International Fraud Awareness Week continues and DARTON GROUP is pleased to feature Donna Turner (Senior Vice President, Global Fraud Policy Executive, Bank of America) as a guest blogger.

Donna Turner - SVP, Global Fraud Policy Executive, Bank of America

Donna is responsible for leading an organization focused on preventing fraud by ensuring a solid “risk versus reward” view of new products, processes, channels and changes throughout the enterprise and industry.

Donna joined Bank of America in 1995 and has held a variety of risk operations, risk management, strategy and process roles over her career with the bank.

THE POWER OF PREVENTION

By:  Donna Turner – Senior Vice President, Global Fraud Policy Executive, Bank of America

As fraud risk management professionals we often speak of highly of the notion of preventing fraud; that noble call to action where we stop the event before it even happens. However, do we really invest the time, money and resources to successfully managing this most critical element of the fraud continuum?

We have all had those days, those events, and those years where we found ourselves wondering “what if we had only thought about that in advance?” While the notion sounds simple enough, it truly is an investment in mindshare, committed and knowledgeable team members, and an ability to apply analytics to what otherwise may be construed as a fraud scare tactic.

Fraud Prevention Checklist

A simple checklist to assess your efforts and effectiveness will answer this question for you.  For each of the following four categories, give yourself five points for each resounding yes, three points for a sometimes and one point if the concept remains elusive.

Integration

  • Is your team aware of and engaged in the fraud risk potentially associated with product launches & changes?
  • Are they at the table to understand changing target markets, processes around fulfillment and servicing?
  • Do you find yourself surprised at changes or feeling fully informed about the capabilities, potential risks & designed mitigants?

Definitions

  • Is your team clearly defining the need for change within your product, channel & process teams?
  • Do you have a clear sense of the magnitude of risk?
  • Clear insight to the magnitude of opportunity if appropriately addressed?
  • Do you know what metric you will be able to point to in order to understand if designed controls are as effective as planned?

Measurement

  • Do you have confident and capable resources in place that can produce fact based assessments of the risk, again including both the risk and the opportunity if effectively managed?
  • Do you have a sense of the existing or baseline performance of those elements in your current operating environment?
  • Has your team given thought to the impact new controls being introduced into your operating environment may have on other control plans, your servicing protocols or even resource levels?

Control

  • When it is all said and done; the product is launched; the process changed; the threat thwarted; the opportunity realized; can your team clearly and succinctly communicate that it was indeed the controls functioning as designed or are you left wondering if some other variable played a role?

Scoring

If you scored 15-20 points, take your team to dinner, give yourself a raise and take the afternoon off. You are effectively covering the foundational elements of fraud prevention.

If you scored 9-14 points, take a look at where your opportunities lie, and take this critical time as the year comes to a close to refocus your teams efforts to cover the identified gaps in the new year.

Less than 8 points look at the glass as half full. You have a significant runway of opportunity ahead of you, that when these simple steps are implemented will position you and your team for even greater success in the new year.

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