Senior Manager, Operational Risk @ iHeartMedia | Board Executive | I Like Risky Stuff | GRC Strategist | Featured Writer | Speaker | Advocate for Blockchain & EQ | Mentor | Advisor | Passionate Motivator
To Fraud Prevent or Fraud Detect? 😵💫 That is the question! As a Senior Risk Manager I support Fraud, Disputes, Risk Implementation, Risk Strategy, and AML/BSA, I cannot emphasize enough the critical role of fraud prevention and detection. 🆚 Sometimes it can be a challenge to appropriately identify when it’s necessary to implement a preventative control versus a detective control when there is a Fraud risk under a high stress work environment right? Recognizing when to deploy preventive controls versus detective controls is key. 🛡️🕵️♂️ Let’s break it down and talk about it. ⚙️ Preventive controls are proactive measures to avoid risks, while detective controls identify and respond to risks post-occurrence. In fraud scenarios, preventive controls could include robust authentication methods, while detective controls involve monitoring transaction patterns for anomalies. 👇🏼 Check out this 5 ways to effectively identify fraud prevention versus detection below. ⚖️ Identifying the right balance is crucial. When facing sophisticated fraud attempts, preventive controls might not be foolproof. Detective controls, like real-time transaction monitoring, become imperative for swift response. 📊 A recent fraud incident highlighted the importance of both preventive and detective controls. By enhancing customer authentication protocols (preventive), we reduced phishing attempts. Yet, a new social engineering tactic emerged. Real-time monitoring (detective) unveiled the threat, allowing prompt intervention. It’s important we continue strengthening our defense against fraud by adopting a holistic approach. Collaboration, innovation, and adaptability are our strongest tools. 💪💼 #DJEMotivates #RiskManagement #FraudPrevention #FinancialSecurity #AML #BSA #RiskStrategy #compliance
