The cost of fraud to the UK economy today is conservatively estimated at around £73 billion per year, with some facets of fraud experiencing aggressive growth. A number of high profile and significant security lapses with the personal and banking data of consumers have also grabbed the attention of the public, as well as that of regulators around the world.

Over the past few years the financial services industry has taken various steps in an attempt to address this issue. These include a number of products and service enhancements (e.g. the introduction of Chip and PIN to address plastic card counterfeiting), combined with the introduction of various initiatives and organisations with specific remits to target fraudulent activity.

Despite these and other measures adopted around the world, criminals are becoming increasingly creative and sophisticated in their approach to financial services-related crime and fraud.

Further, walking the tightrope between healthy product and customer growth and effective credit strategy and risk management is a challenge that all lending institutions face on a daily basis.

Accourt has extensive experience of working with banks, financial institutions, merchants and others on both fraud and credit risk management topics. We have led a number of innovative initiatives to assist financial services organisations to develop more proactive, integrated and effective approaches to managing credit risk and to reducing fraud.

These initiatives have been both with individual organisations and cross-industry.

Analysis of the operation and performance of portfolios against appropriate and relevant industry and regional benchmarks. Accourt follows this analysis and benchmarking with insights and pragmatic recommendations to address any sub-standard performance and/or issues.

For a Tier 1 UK Retail Banking Group – undertook a detailed analysis of the fraud management performance of the portfolio and benchmarked this against its peers and the broader industry. Accourt then developed a detailed, road-mapped, executable set of recommendations to help the client address the issues.

Accourt’s team of specialist consultants advise on best-in-class approaches to all significant fraud management disciplines (e.g. deterrence, authentication, detection, incident/case management, etc.).

For a top tier International Payment Scheme – supported the client to understand and design a fraud management strategy and supporting operational capability for a new product.

Accourt has a deep and clear understanding of fraud intelligence and appropriate strategies to develop this capability – and to maximise benefit and value from it. We are able to help drive organisational understanding of this discipline and to develop the appropriate strategy and implementation roadmap to enable our clients to maximise this key fraud management opportunity.

For the UK retail banking industry – in support of UK Payments (formerly APACS) and the UK retail banking industry, Accourt developed and successfully delivered all aspects of the industry’s Fraud Intelligence Sharing System (FISS). This included supporting and driving the strategy development that underpins this initiative.

Please refer to our Fraud Intelligence Sharing System “white paper” for further information.

Effective fraud management is underpinned by the availability and use of accurate, fit-for-purPOSe, dynamic and timely fraud Management Information (MI). There are two high-level classes of fraud MI:

Executive MI (EMI): Executive level MI that enables the management team to monitor portfolio fraud performance and make effective strategy decisions based on these performance indicators

Operational MI (OMI): Management level MI that enables portfolio managers to monitor fraud operations on a day-to-day basis, enabling operational decisions to be made as and when required. Accourt is able to provide practical and executable advice and direction on MI strategy development and implementation, as a direct consequence of our detailed understanding of the entire fraud management discipline, its challenges and associated organisational implications.

For the UK Retail Banking Industry (in association with UK Payments – formerly APACS), developed a fraud MI strategy coupled with an effective delivery roadmap which enabled the industry to implement the strategy.

The Payments Card Industry Security Standards Council is an open global forum for the ongoing development, enhancement, storage, dissemination and implementation of security standards for account data protection.

The Payments Card Industry Data Security Standard (PCI DSS) is a versatile security standard that includes requirements for security management, policies, procedures, network architecture, software design and other critical protective measures.

An in-depth understanding of the workings of the payments industry, and the inter-relations of the stakeholders within it, enables Accourt to deliver pragmatic business and commercial advice on how best to approach the challenges relating to PCI DSS and other data security related challenges. Accourt understands the assessment and compliance regime and is able to rapidly develop a roadmap to move clients from understanding their shortcomings in this area through to addressing and resolving these in a commercially aware and acceptable manner.

For a significant multi-billion pound turnover Merchant – designed and delivered an approach to understanding the impact of PCI DSS (the Payment Card Industry Data Security Standard) on their business, and subsequently developing a roadmap to address their shortcomings in complying with PCI DSS.

Multi-industry and sector collaboration is, and continues to prove, extremely successful as a complementary fraud management strategy. Accourt is actively involved at the forefront of the most significant and ground-breaking of these initiatives in the UK and is able to provide our clients with appropriate insights and advice on how to best leverage opportunities in this space – from data sharing strategy, right through to design and successful delivery of such initiatives.

For the UK Retail Banking Industry (in association with UK Payments) now in its fourth year of operation, Accourt was responsible for supporting and driving the industry in defining, business-casing and implementing an approach – the Fraud Intelligence Sharing System (FISS) – for industry-wide fraud intelligence sharing. A detailed understanding of this rapidly evolving environment and the key stakeholders across the public and private sectors in the UK places Accourt in a unique and envious POSition to assist clients in rapidly articulating and addressing their requirements in this space.

Rapidly decreasing levels of tolerance by the UK Information Commissioner for security breaches, combined with severe punitive action against organisations and bodies responsible for these, have meant that most organisations have begun to institute additional layers of control and monitoring to guard against these and similar eventualities. Accourt’s active and successful engagement of the Information Commissioner’s Office during this initiative ensures that it is well placed to advise, not only on measures to monitor fraud instances arising as a result of data compromise and best practice for avoidance of these risks, but also the regulatory and compliance aspects and implications.

Please refer to our Fraud Intelligence Sharing System “white paper” for further information (still relevant?)

Increasing pressure on unsecured lenders to vet and decision credit applications in near real-time continues to encourage organisations to seek best in class risk management and technology support – and thereby help to achieve effective and positive credit risk management. Accourt’s broad and deep industry-leading knowledge and experience in this field is second to none. Furthermore, Accourt’s product and technology independence ensures that organisations receive truly unbiased and realistic support and advice.

Accourt’s range of services in this sphere include credit risk management strategy and roadmap development; business case development; facilitation of multi-stakeholder buy-in; business and operational solution design; independent vendor and technology analysis, evaluation and selection; implementation planning and support. (update links MP)

For a Blue Chip Credit Card Issuer developed and managed high-performance credit strategies for all consumer segments within a broad consumer card portfolio. This included measuring potential performance and impact of candidate strategies prior to implementing them, as well as designing, developing and implementing balanced credit management strategies for previously unbanked consumers with little or no credit history.

For one of Europe’s largest card issuers reviewed and benchmarked its commercial card division’s approach to credit limit setting and utilisation, at both client and cardholder level. Identified and recommend specific areas for improvement to enable material revenue growth and customer service improvements without impacting overall credit exPOSure.

Walking the tightrope between healthy product and customer growth and effective credit strategy and risk management is a challenge that all lending institutions face daily. Key drivers for positive and effective credit risk management include increases in personal insolvencies, significant exPOSure in a number of sectors, not only the sub-prime sector, for some organisations as well as the inescapable threat of fraud.
Still relevant?