Anti-fraud management in a commercial bank: fraud detection and prevention in practice

Programme

Module 1. Introduction to anti-fraud and current threats

Module objectives:

• Form a shared understanding of anti-fraud management
• Review the current fraud landscape

Content:

• The concept of fraud/ anti-fraud
• The role of anti-fraud in the bank's risk management system
• Main types of banking fraud:
• payment fraud
• credit fraud
• social engineering
• insider fraud
• digital fraud
• Current trends and the evolution of fraud schemes

Practice: discussion of examples from participants' practice

Module 2. Regulatory requirements

Module objectives:

• Understand regulators' requirements and best practices

Content:

• Requirements of the Central Bank (the local regulator)
• AML/CFT vs Fraud: differences and points of overlap
• International standards (Basel, ISO 22301/27001, FATF — overview)
• The bank's internal policies and procedures
• Liability of the bank and its employees

Practice: analysing a typical bank anti-fraud policy

Module 3. Anti-fraud processes and the organisational model

Module objectives:

• Understand how the anti-fraud function is built in a bank

Content:

• The anti-fraud life cycle:
• prevention
• detection
• investigation
• response
• reporting
• Roles and areas of responsibility (business, IT, security, compliance)
• Centralised vs decentralised model
• KPIs and metrics of anti-fraud effectiveness

Practice: building a target anti-fraud model for the bank

Module 4. Fraud detection tools

Module objectives:

• Master the main methods of fraud detection

Content:

• Rule-based systems
• Fraud scenarios and triggers
• Behavioural analytics
• Using big data and ML (at a conceptual level)
• False positive/ false negative: balancing the risks
• Real-time vs post-hoc analysis

Practice: analysing examples of fraud scenarios and alerts

Module 5. Investigating fraud incidents

Module objectives:

• Learn to work with incidents in a structured way

Content:

• The fraud investigation process
• Data sources for investigations
• Documenting incidents
• Interaction with the business and law enforcement bodies
• Working with customers in fraud cases

Practice: the case «A customer's suspicious transaction»

Module 6. Preventing and reducing fraud risks

Module objectives:

• Master preventive anti-fraud measures

Content:

• KYC and customer due diligence
• Fraud-by-design in products
• Training staff and customers
• Limits, blocks and additional checks
• Anti-fraud and customer experience (CX)

Practice: developing a set of preventive measures for a bank product

Module 7. Anti-fraud in digital channels

Module objectives:

• Understand the specifics of digital fraud

Content:

• Internet and mobile banking
• Account takeover
• Phishing, vishing, smishing
• Device fingerprinting
• Biometrics and authentication

Practice: analysing social engineering scenarios

Module 8. Summary

Content:

• Discussion of mistakes and best practices
• Answers to questions
• Recommendations on developing the anti-fraud function