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Whitepaper

3 Vs of Fraud Detection Reveal Suspicious Activity in Your Data

Financial Crimes

Craig Willis

09/15/2022

Driven by the dual forces of technological advances and the COVID-19 pandemic, the financial industry has seen a surge in digital transactions. And even as institutions struggle to maintain a firm grip on their transaction data, risk management and AML specialists face a growing challenge to uncover fraud and ensure regulatory compliance.

The costs of fraud can be damaging to your institution’s bottom line and its reputation. To root out suspicious activity, banks, fintech companies, and other institutions adopt specific rules to analyze transaction data for fraud. In our experience, the most comprehensive fraud detection scenarios can be broken into 3 parts: Value, volume, and velocity.

In this white paper, you’ll learn:

  • How rule-based scenarios apply custom thresholds to find a needle of fraud in the haystack of your transaction data.
  • The ways rules reviewing a transaction’s value, volume, and velocity generate actionable alerts.
  • How to apply value, volume, and velocity-based scenarios to identify irregular customer behavior.
  • The critical importance of tuning rule-based scenarios to the specifics of your business and its customers.
  • Why AML/CTF compliance programs need constant care to remain effective.

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