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7 Best Practices for Hiring a Fraud Analyst

posted on: Tue May 09 2017

There are 1,900 listings for Fraud Analyst positions on Indeed.com, the #1 job site worldwide. Over 50 percent of the positions pay more than $85,000 per year. And nearly 20 percent pay over $100,000!

For online businesses and eCommerce operations, hiring for this vital role involves a significant investment of time and money. Below are 7 key capabilities to look for when hiring a fraud analyst. 

  1. Work History / Experience. Individuals with backgrounds in accounting, finance, legal, law enforcement, and statistics are strong candidates. Fraud analysis is a form of detective work where the best analysts are able to recognize anomalous data (“red flags”) within data sets. Here are some examples of red flags that fraud analysts in the banking and lending sector should be able to quickly detect:
    • Recently generated Social Security Numbers (SSN)
    • VOE (Verifications of Employment) dates that don’t match
    • EIN (Employer Identification Number) formats that don’t match the standard XX-XXXXXXX format [two digits (hyphen) seven digits]
  1. Capabilities / Skills. What do you look for in a first-rate fraud sleuth? Key capabilities include analytical skills like pattern recognition, identification of inconsistencies, and deductive reasoning. All of these qualities can be recognized and measured.
  1. Personality Traits. Innate curiosity and an element of moral fortitude—being on the side of truth and honesty—are strong indicators of a successful fraud analyst. Also, look for a combination of energy and enthusiasm. Tenacity and persistence are clearly necessary when pursuing root causes in complex fraud schemes. 
  1. Repeatable, Systematic Workflow. Every eCommerce operation is different with unique processes, software, tools, and techniques. But a consistent, systematic workflow will deliver the best results. Elements of a good workflow include:
    • Acquiring key details on suspicious orders
    • Identifying suspicious orders
    • Proceeding through a checklist of items to review
    • Using a rubric or scoring system to determine whether to (A) approve, (B) decline, or (C) escalate
    • A “living” agent review and reporting process for continual process improvement
  1. Ongoing Training. Fraud doesn’t stand still. Fraudsters are always evolving, so screening and prevention tactics that worked last year won’t necessarily be sufficient this year. A proven training method is to offer weekly, one-hour “lunch-and-learn” sessions where experienced agents employ a case study approach. Newer agents learn the shortcuts, tricks, and triggers for rooting out fraud quickly and efficiently from seasoned “veterans.” The value of these sessions is not only in identifying the steps agents took to solve a case, but also understanding the blind alleys that they avoided. 
  1. Professional Certification. The Association of Certified Fraud Examiners (ACFE) is a recognized professional organization that offers training and an earned certification. The ACFE exam tests candidates on four major areas of fraud knowledge and expertise:
    • Financial Transactions and Fraud Schemes
    • Fraud Prevention and Deterrence
    • Investigation
    • Law
  1. Expertise and Support. Kount’s in-house fraud experts support all of the processes mentioned above by providing our customers with the training, guidance, and insights they need to conduct fraud protection operations. By taking advantage of our software, services, and training, Kount clients have seen their Fraud Analyst productivity and accuracy improve dramatically. 
    • Agent order review rates improve up to 2X 
    • Agent accuracy improved by up to 75 percent

Join BodyBuilding.com and Kount for a live webinar to learn best practices for optimizing manual reviews and look like a rock star doing it. 

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