As an online-only bank, this financial institution needed to maintain a lower cost structure compared to their traditional banking competitors, in order to specialise in high-value money market accounts and certificates of deposit with some of the highest yields paid in the market.
As with many online banks, it continually handles a high volume of new account openings – both legitimate and fraudulent.
But online fraud schemes are increasingly sophisticated and are becoming more difficult to detect. At the same time, customers demand a seamless online experience beginning with the ability to easily, quickly and seamlessly open new accounts online.
With an average loss per fraudulent account opened of US$1,500 an effective solution became critical. The bank needed technology to immediately detect and prevent fraud losses without reducing the quality of service their customers have come to expect.
Looking to protect their business and minimise their losses, while also protecting their existing customers, the bank opted for FraudNet for Account Opening for help.
The results were as eye-catching and as they were quick. Within the first quarter of operation alone, the bank identified and eliminated more than US$2.3 million in potential fraud. With an out sort rate of 3% and a 2:1 false positives it has also paved the way for a more cost-effective workforce. Since deploying FraudNet, the bank continues to experience a phenomenal 26:1 return on investment.
But this is simply a quick snapshot of early results. To see the full story, click on the link here and go to case studies.