How Can Fraud Prevention Increase Profits? 2 Minutes on Fraud: Episode 15
Episode 15 “How Can Fraud Prevention Increase Profits?”
With the right strategy, fraud prevention can be turned from a cost center to a profit center in every organization. Not only does stopping fraud save money, but with certainty in every digital interaction, organizations can enter new markets and sell cross-border without customer friction, resulting in increased revenue. And with access to business intelligence reporting that provides deep insights, fraud prevention teams can advise other revenue-generating departments to help maximize sales opportunities.
Don Bush: One of the things that we see a lot is the fraud prevention team underestimates themselves. We think you can take a fraud prevention team and actually turn it into a profit center, not a cost center, in each organization.
When you look at a fraud prevention system, it falls somewhere under the finance leg of the business. A finance group wants to lower costs and increase effectiveness. A good fraud prevention system and a good fraud prevention team can actually add revenue to the bottom line of a company by making sure those criminal fraudsters are never allowed to buy things and that we open the sales funnel up, as wide as possible. A fraud system can do that. The data that it provides you helps you market better, helps you sell better, helps you put a better website together.
You don't get more data than any other place in the company than in that payment. This is a customer that has purchased from you, they know how and when and why. All those different things are valuable to a company when they start looking at strategically growing and evolving what they do.
A good fraud team, what they do is they've got lots of reports. How effective are they being? Are they increasing conversions? You can actually go into marketing and say, "Hey, here's our conversion rates." You can go into sales and talk about, "Hey, we've opened the sales funnel and guess what? We are accepting 3% more orders than we did last month or last quarter."
A fraud team that takes those types of reports and goes to the sales management team and says, "Here's how we can help you." Or they take it to the marketing management and say, "Here's how we can make a difference." Or they go to the operations or logistics or finance and they report properly to those different organizations and show the impact that they have, those organizations are now going to start saying, "How can we partner with the payments and fraud group so that we can ensure we're maximizing our sales opportunities?"