Don’t isolate yourself-create a feedback loop
As we ponder ancient civilizations, such as the Inca’s of Machu Picchu, it is incredible that even though they were geographically isolated, they managed to communicate across this treacherous terrain.
Many companies understand that creating fraud strategies should be a priority, but in my experience most companies fall short during what I term the feedback loop stage. There must be a protocol for monitoring, reviewing, and analyzing these controls based on reviews of the data. We must be able to review and then comprehend the information in order to look for trends, patterns, and outliers in order to modify strategies accordingly. Monitoring controls can be as simple or complex as allowable and can be calibrated with the financial resources that are available. It is more important to have a simple system of monitoring and modification than no system at all.
Many companies utilize fraud solution or case management providers that have the ability to leverage technology to assist with the monitoring and modification process. These monitoring programs—also called dashboards, business intelligence programs, and management reporting systems—work in conjunction with other internal data systems and have the ability to filter information based on user need. These technical systems offer the user the ability to modify what is seen in the final visualization, whether it is claim volume, fraud volume, geographic focus, exposure, threshold, referral percentage, line of business, and an almost infinite number of data sources. This visual representation, and the ability to alter data fields, is an extremely effective method as we start broad and can then pinpoint areas of opportunity. We can also easily view outliers, or data that falls outside of the norm, for deeper analysis and interpretation.
Stay safe!
Dr. Fraud