Fraud review team discussing data at a table

What do inefficient manual fraud reviews really cost you?

The next generation of cyber fraud will be defined by AI. Fraudsters are already using deepfake technology to manipulate employees into making lucrative transactions and creating fictitious, synthetic identities that they can use to escape detection. And more creative, AI-enabled fraud tactics are likely around the corner.

Article at a glance

  • Fraudsters have become increasingly adept at using AI. In response, many fraud operations experts are looking to automate more of their security infrastructure with AI-powered solutions.
  • The role of the human reviewer is more important than ever. For a well-rounded fraud prevention strategy, the human reviewer and identity engine must complement each other.
  • There’s no one-size-fits-all identity solution — it’s important for businesses to understand the ROI of different solutions, as well as how to implement them thoughtfully.

In response, many fraud operations experts are looking to fight fire with fire by adopting AI-driven fraud detection solutions. These solutions can automatically flag suspicious activity, from questionable credit card transactions to new accounts that show signs of using synthetic identities.

However, the adoption of these advanced tools does not make manual fraud review obsolete. Ultimately, automated fraud software should make the human reviewer’s job easier, empowering them to verify identities with greater speed and accuracy.

By embracing both sides of the antifraud equation — automated tools and the human touch — your organization can create a more efficient, scalable and accurate fraud detection process.

The causes and cost of inefficient manual fraud reviews

Manual fraud review workflows are an ideal target for the kind of automation that streamlines and simplifies human experts’ work.  Many fraud prevention teams are understaffed and under-resourced.  Additionally, manual fraud review requires a highly specialized, technical skill set, which means it can be difficult to backfill the position if there’s turnover — especially on a limited budget.

With hundreds of transactions to review every day and a shortage of staff to review them, the queue can quickly grow to unmanageable levels. That’s especially true when reviewers lack the information they need to make swift judgment calls and take action on suspicious transactions. They may have data on their users, but without the right automated solution to organize it, the data may not be relevant or presented in an easily digestible format.

Inefficient manual fraud reviews aren’t just a problem for your internal teams. They also erode customer trust. If a legitimate transaction spends days in limbo, a banking customer will likely grow frustrated and may even take their business elsewhere. An investment in automated fraud review workflows is an investment in improved customer relationships as well as internal efficiencies.

Man manually reviewing financial paperwork

Lighten the load on your human reviewers

To help break up the traffic jam of manual reviews, your organization needs to find ways to eliminate inefficiencies in the manual review process. This means using automation to enhance the typical manual fraud review workflow.

For example, an automated review engine can analyze network signals, IP locations and other identity attributes to help flag risky transactions for a human reviewer. The reviewer then has access to an easily understandable interface that provides all the context they need to make a call. Reviewers no longer have to waste valuable time tracking down information on a user and can move through the queue much faster. Not only does this drive greater efficiency, it allows your business to scale because you won’t be bogged down by elongated review timelines.

The catch is that it’s important to select the appropriate automated tool for your business. The right solution will depend on your industry, where you’re experiencing problems in the customer journey, the composition of your current manual review team and other factors. You also have to consider the anti-fraud solutions you already have in place and whether any new software additions will integrate with them or not.

Fortunately, you don’t have to weigh these factors by yourself. Mastercard’s ROI Fraud Calculator can compile each of the factors and offer a clear view of how much you can expect to save with Mastercard solutions. Understanding the ROI of anti-fraud solutions provides you a stronger foundation for decision-making — and helps you sell senior leaders on the importance of adoption.

But regardless of which solution you choose, make sure to integrate it thoughtfully. Consider how these solutions affect the process your human reviewers rely on, provide comprehensive training and remain receptive to reviewers’ feedback. After all, the goal is to make their jobs easier, not cause further confusion.

Woman reviewing data with magnifying glass for manual fraud review

It’s time to fight back against AI-driven fraud

The threat of AI-driven fraud attacks will continue to loom large over fraud operations experts for the foreseeable future. Though we’re all searching for answers, one thing is certain: The human touch isn’t going away anytime soon.

This is your advantage — the ability to pair experienced human experts with identity solutions that make their jobs easier. It’s a strategy that enables greater scalability and efficiency. This empowers human reviewers to act more decisively when a suspicious user opens a new account or makes a transaction. In short, your reviewers will have the tools at their disposal to fight back against fraud quickly and efficiently.

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