F R A U D M A N A G E M E N T
i
c
Y
e
c
and produce supporting documentation customer’s bank receives a complaint
on a regular basis. Consumers are used either because the payment has not
to shopping, banking and gambling been made or received or because an
online with instant service delivery so unauthorised payment has been identified
lengthy verification processes may by the real bank account-holder.
have a detrimental impact on fast and
efficient customer service. Operators Criminals know direct debit payments will
may risk losing customers to those able fail once the bank account holder discovers
to complete transactions in seconds the false payments and are prepared to
especially in highly competitive markets. move quickly on to the next victim, selling
the expensive handset on the black market.
The standard method of verifying
customers prior to issuing a new mobile Direct debit fraud is currently possible
phone handset or contract is to ask for because the systems in place to check the
documentation such as a driving licence accuracy of customer-supplied personal and
or utility bill, backed up with a credit or banking information are limited to checking
debit card. The majority of new customers that the bank account data appears valid
come through retail stores where staff rather than actually confirming it really is.
must be able to spot fraudulent or invalid
documentation and, in part, act on instinct. Putting the correct security measures in
place will not require a major overhaul
of retailers’ existing systems and
Falsifying Bank Details – procedures since relevant security
questions are already available. The key
Criminal Gangs Conduct is in incorporating efficient, real-time
data validation solutions into the sign-
Payment Fraud up process. These will satisfy operators’
desire to improve security cost-effectively
Criminals conduct mobile payment fraud, and help manage customer expectations
also known as subscription fraud, by that payments will be securely handled
setting up unauthorised direct debits without inhibiting the speed of purchase.
on third-party bank accounts using
false identities and stolen and/or made- To prevent direct debit fraud, retailers and
up account and sort code details. This operators need to be aware of two things.
information can be obtained in a number First of all, they need to be able to check that
of ways: fraudsters may target call consumer-supplied bank account data is
centre staff handling sensitive account correct and current. Secondly, they have to
information and attempt to bully or bribe be able to corroborate the data provided with
them into providing financial details. a reliable reference for the supplied name
and address. To make this possible, they will
However obtained, the information can be need to take advantage of the newest, real-
used to establish a false account and a time verification solutions to triangulate the
direct debit set up under someone else’s customer, their account and their address.
name and bank account, a process which
is electronically managed by most large Reducing levels of mobile payment fraud
and medium telecoms companies. Using to minimise bad debt and strengthen
false accounts, criminals can obtain a new customer loyalty should remain a major
mobile phone and contract, make phone business driver in the competitive telecoms
calls and access high value data services environment. As the industry shares more
for which they do not intend to pay. information on levels of fraud and known
fraudsters, checking customer identity,
Direct debit payments are usually set up to bank account validity and the link between
cover the cost of the contract and additional the two will have immense benefits for
billing charges. As long as the details the mobile industry as a whole, including
provided pass the retailer’s basic checks, the its customers and their relationship
customer can leave the shop with the phone. with their mobile phone supplier.

Most direct debit fraud is only identified Mark Bish is Senior product
when the originating organisation or the manager at Experian Payments

3
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49