In our series on Fraud Trends for The Future, one concept identified as becoming more and more important is the need for real-time fraud risk assessments. But what does that really mean?

Most are comfortable and aware of the term risk assessment. A fraud risk assessment is aimed at proactively addressing a business’s vulnerabilities to internal and external fraud. This includes:

  • Types of fraud vary by business line
  • Internal frauds include embezzlement and misappropriation of assets,
  • External frauds include hacking and theft of proprietary information

But the concept of a risk assessment typically implies a process that is conducted on a periodic basis.

Real-time fraud detection varies from your periodic fraud risk assessment. It is the real-time execution of fraud-detection algorithms to detect fraudulent activities in real time (on credit cards and other financial payment systems as well as operational activities). It makes use of real-time data analysis such as forensic analytics and predictive analytics to determine if an ongoing transaction is legitimate or not.

Studies have shown the system has reduced fraud losses in the U.S. by 70% since 1992, when real-time fraud detection was introduced.

This course delves further into the elements that comprise a real-time fraud risk assessment or detection process.

Learning Objectives
  • Discover and define a typical fraud risk assessment.
  • Discover a real-time fraud risk assessment.
  • Explore and review step one and two in creating a real-time fraud risk assessment.
  • Explore and examine how to quantify, assess and prioritize risks in a real-time fraud risk assessment utilizing technology.
  • Identify several streaming platforms currently available.
  • Discover and discuss the process of analyze, prioritize and process information from a real-time risk assessment.
  • Explore and examine communication and reporting concepts.
Last updated/reviewed: September 07, 2023
2 Reviews (11 ratings)

Reviews

5
Anonymous Author
Good explanation about how to quantify, assess and prioritize risks, streaming platforms and the communication and reporting concepts.

4
Anonymous Author
I like the way that we were shown the steps for a real time risk assessment.

Prerequisites
Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Fraud Trends for the Future - Need for Real-time Risk Assessment - Part Two8:00
  Real Time Fraud Risk Assessment13:56
  Remaining Steps10:30
  Streaming Platforms3:06
  Analysis, People and Processes13:48
  Communicate, Implement and Respond3:20
  Summary0:55
CONTINUOUS PLAY
  Fraud Trends for the Future - Need for Real-time Risk Assessment - Part Two53:35
SUPPORTING MATERIAL
  Slides: Fraud Trends for the Future - Need for Real-time Risk Assessment - Part TwoPDF
  Fraud Trends for the Future - Need for Real-time Risk Assessment - Part Two Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam