As the scale and complexity of fraud attacks increase, many businesses are looking to introduce additional fraud services. This multi-layered approach to fraud detection provides the best defence against an evolving fraud threat, but it also introduces additional challenges.
Our latest fraud research shows that more than three-quarters (76%) of businesses use multiple fraud solutions from different vendors. However, only 42% have connected their fraud solutions together. This coordination of fraud services is called orchestration and is essential to optimise fraud prevention efforts.
Without connecting different fraud signals into a single decision, businesses are putting themselves at a disadvantage. Each fraud solution has a distinct approach to identifying fraud – when these are combined into an overall recommendation, the resulting decision is much stronger than the sum of its parts.
This article discusses what fraud orchestration is and how a fraud orchestration platform can improve fraud detection accuracy while also reducing costs and providing better customer experience.
What is fraud orchestration?
A fraud orchestration platform helps businesses reduce fraud losses by connecting different fraud prevention services and data sources in a unified way. Fraud orchestration provides a central hub to manage multiple fraud signals from various tools – the result is a more holistic analysis of each customer application or transaction.
Combining various fraud services allows for more accurate fraud detection as advanced fraudsters know how to fly just under the radar of many fraud prevention thresholds by getting close but not exceeding fraud alert triggers. By combining different signals, businesses can connect the dots from multiple fraud data points for a more accurate overall decision.
How does fraud orchestration relate to decisioning?
These two capabilities are closely related, yet there is a difference between them:
- A fraud orchestration platform is the underlying system that allows for the integration and coordination of multiple fraud solutions. These could be from third-party vendors or developed in-house.
- In contrast, a fraud decisioning system evaluates and consolidates the outputs from the different fraud services to provide an automated risk evaluation that can be used to make the final decision to accept, refer or reject an application or purchase.
Why is fraud orchestration more important than ever before?
The fraud threat has grown significantly with the advent of Generative AI, as this technology lowers the technical barriers required to commit fraud. It also enables more complex fraud attacks through highly realistic deepfakes and convincing synthetic identities.
In response to this threat, many organisations are looking to increase the number of fraud services they use to protect themselves and their customers. According to our research, two-thirds (66%) are planning to increase the number of fraud prevention solutions they use in the next 12 months.
But adding fraud services is challenging for a number of reasons – they can have a negative impact on customer experience by introducing additional friction, and they can drive fraud prevention costs up.
This is why fraud orchestration is so important. It allows you to automate the selection of fraud checks based on the individual risk profile of each customer. This means that low-risk customers experience zero friction with passive checks – such as device profiling and behavioural biometrics – happening in the background.
For higher-risk customers, a series of additional checks can be called in parallel or one after the other. This means that good customers have a fast and simple application or checkout journey, while suspect customers have to complete additional steps to verify their identity.
Nearly two-thirds (64%) of respondents in our research agree that selecting appropriate fraud checks based on individual customer risk is the future of fraud prevention.
What are the benefits of using fraud orchestration?
No single fraud service can detect fraud with 100% accuracy. This is why businesses use multiple layers of solutions to improve the accuracy of their fraud detection.
There are many advantages associated with coordinating these services on a single platform to produce a combined decision – such as:
- Greater fraud detection accuracy – of fraudulent and good customers. 72% of those businesses that are already using a fraud orchestration platform stated that it had helped them reduce false positives.
- Real-time decision-making – with input from the right fraud services, decisions can be fully automated with confidence. This improves customer experience with faster decisions while also reducing the number of applications/transactions that require manual reviews.
- Cost savings – only calling fraud checks as required and not using all services for all customers can significantly reduce the costs associated with each transaction. The reduction in manual reviews can also contribute towards cost savings.
- Simple integration of additional fraud services – new services can be incorporated into the orchestration platform as needed.
- Better customer experience – instead of every new or returning customer facing the same level of friction, orchestration allows for relevant fraud checks to be dynamically called – depending on the customer’s risk threat. Our research shows that nearly three-quarters (73%) of businesses agree that orchestration of fraud signals is critical to reducing onboarding friction.
Are you looking for a fraud orchestration and decisioning solution?
Experian’s award-winning fraud orchestration platform, CrossCore allows you to seamlessly connect multiple fraud services and access data through a flexible API. With customised decisioning workflows you can combine risk-based authentication, identity proofing, and fraud detection into a single, state-of-the-art cloud platform.
Contact us today to speak to your local representative and find out more about CrossCore.
For more information about our latest fraud research, conducted in partnership with Forrester Consulting, simply fill out the form below and we will send you a complimentary copy.
