From low-level ‘fudging’ of numbers to outright dishonesty, fraud will always be with us. But, the COVID-19 crisis has created an environment uniquely positioned to encourage fraud from more people across all socioeconomic levels than ever before.
While a strong economy traditionally sees a rise in third-party fraud (ID take-over) and first-party fraud in weak economies, we’re now likely to see more of both.
People who were already struggling are finding their lives even more difficult, while those who were doing well may have their previously secure and lucrative platforms pulled out from under them. Added to this is the move towards working from home and digital on-boarding, which removes a key safeguard against fraud – in-person checks.
The unusual economic environment also helps support rationalising the behaviour. For some, committing first-party fraud can be seen as a means to an end – maintaining a lifestyle for their families or keeping staff employed, for example. For others, identity theft can be a ‘Robin Hood’ act – stealing from the rich, who can recover from losses, to support those who are in desperate need.
Fraud Share New Zealand is a cross-sector agreement, which gives organisations the capacity to quickly and securely screen applications against information provided in previous applications with other fraud share participants.
If the system finds inconsistencies – perhaps the phone number is attributed to a completely different person or the declared income is widely dissimilar – your team members are given access only to the inconsistent applications. They can then follow up on the applications that have returned anomalies.
Benefits of Fraud Share New Zealand:
Improve customer experience
An increase in fraudulent activity doesn’t just affect your profit margins through unrecoverable debts and time wasted in pursuing them. It also leads to more inconvenient and unwieldy checks for customers, the vast majority of whom aren’t intending to commit fraud. With Fraud Share New Zealand, these additional checks can be reserved only for applications with inconsistencies. That enhances the experience for those customers with applications that haven’t been flagged.
Get fast answers for your staff and customers
In many cases, there could be a reasonable explanation for the anomaly, but Fraud Share New Zealand provides an important check, giving your team the confidence to process most applications quickly. This seamless process is key for any business under increased pressure to process applications faster.
Reduce fraudulent applications
On top of helping you spot fraud amongst your applicants, Fraud Share may also help you reduce it overall. As Fraud Share New Zealand becomes more widely used and known, the businesses who use the tool will be seen as less attractive targets.
Contribute to New Zealand’s fraud reduction and know the extent of your fraud
Even if you’re already conducting rigorous due diligence, the reality is that you only know about the fraud you find and you haven’t identified the full extent of the problem. The power of Fraud Share New Zealand will grow as each new organisation joins the system to follow up on inconsistent applications, fast-track the others and contribute to the overall reduction of application fraud in New Zealand.
There are currently five banking and finance organisations using Fraud Share New Zealand, with plans to open it to other sectors. As this happens, your involvement will contribute to an overall reduction in fraud in New Zealand by adding your data set into the mix to increase the chance of spotting inconsistencies.
This will protect your margins, improve customer experience and – best yet – reduce the number of fraudulent applications you receive overall.
To learn more about joining Fraud Share New Zealand – call us now. 0800 236 874