Businesses are constantly trying to find better ways to fight fraud but one question many are left asking is ‘is fraud detection software worth the expense?’. A tool to tackle this sounds a good idea, but if it doesn’t work then it could well be a case of ‘throwing good money after bad’. So, is it worth your time?
First things first, it’s important to realize the seriousness of the threat. Most businesses are wise to the financial and reputational damage that can be done through fraud. Many, indeed, already embrace fraud prevention systems to protect their paperwork, for example.
But, an increasingly sophisticated online threat has added a new level of complexity to the dangers posed to business and many people feel the software is the only way to fight back against a cyber threat. If you fight fire with fire, then you fight cybercrime with software, right?
Finding the best fraud detection software can be a challenge, however. The ideal package should be able to identify and respond to the challenges you face, whether you’re a high-volume e-commerce firm that needs to handle safe transactions or a recruitment company that needs to protect the private details of candidates.
Packages are increasingly adept at this as we learn more and more about the nature of threats and how to detect them. This progress – a continuous process – hints at why you should give the software a second try if you’ve previously dismissed it as not offering the right protection for your business.
Sean Neary, a financial services fraud expert who has managed fraud systems explains that many pieces of software lack “agility” and “used models that were not adaptive”.
He said: “This can limit the system’s ability to introduce new functionalities and ingest new data to detect fraud, particularly new types of emerging fraud resulting in poor handling of alerts and less efficiency.
Organizations need an agile and responsive end-to-end solution they can rely on, that needs little to no manual intervention”.All the more reason to do your research to find what’s right for your business – and what has worked for other companies of a similar size and scope to you.
There is no starting or ending point to fraud prevention, it’s an ongoing cycle that needs monitoring. Given that the threat comes increasingly from digital platforms, software is an essential line of defense in a business’ armoury. Fraud detection software is worth the expense, therefore, but the key is to shop around and find the right package for your business and your circumstances.