Detecting and preventing application fraud requires more than just credit scorecards. The ability to process applications and make connections to previous fraud can go a long way to detect and prevent application fraud.
Most Communication Service Providers are horrified when they check to see how many expensive smartphones they have shipped through their subsidy programs have not been connected to their network. Is you Application Fraud controls strong enough?
Application fraud manifests in different ways but the overarching principle that applies to Application fraud is those customers who come in with an intent to defraud the organization – i.e. applying for products or services for which they have no intent to pay.
Application Fraud Management, as we see it, is a powerful way to stop fraud from occurring in the first place. Anecdotal evidence suggests that fraudsters take full advantage of vulnerabilities in the application process and come back aggressively to exploit the system. If anyone is interested in controlling fraud, controlling application fraud should be the first step.
According to the 2011 Global Fraud Loss Survey conducted by Communications Fraud Control Association (CFCA), the top two fraud types in the Telecommunication industry are Subscription Fraud and Compromised PBX System Fraud (circa $10 billion in combined dollar loss). While PBX fraud has been around for many years it has only taken centre stage as […]