An overview of the FRAUD Solution specific for the GCC market. Includes specific policy rules, negative data and scorecards built upon 350000 historic accounts.

1. BANKING FRAUD
ISSUES STATS
AND SOLUTIONS

2. The Fraud Challenge
 Globally over 1 Billion records have
been exposed through the use of
Fraud
 Even the big data handlers have
experienced huge issues and
negative branding
– Equifax – Linkedin – Target stores – ebay –
yahoo – dating sites
 Customers are quite clear that they
are reluctant to engage with
companies / banks who have
experienced a data breech
Example of data breeches globally
Preventing fraud whilst maintaining profitable customers

3. FRAUD RISK
GCC FOCUSED

4. GCC Specifics
Why is Credit Application Fraud prevalent in the region?
Transient Expat Population
Limited Data Sources
Validation of Information
Constant churn of individuals, new to country and maybe new to credit
Population is dominated by economic migrants that are commercially aware
No single data source available to search individuals relevant data
Access to national data repositories are restrictive and expensive
Data validation can not always be confirmed or relied upon
Constant changes in economic situation can impact on standard predictive
models.

5. Business Challenge: Typical Fraud
Hidden audit
trail
External Agents
Digital Application
Location
Location doesn’t
match Applicant
home / office
Abnormal
Behavior
Payment Types
Application Speed
Inconsistent
answers
Bad Data Usage
Mis-match data
Generic answers
Known phone
numbers

6. Business Challenge: SME Fraud
In the UAE there are specific Credit Risk issues that concentrate around SME credit application fraud.
Challenge Issue
Easy to establish new entity in multiple free
zones.
Company startup requires little or no
investment and can be established in a short
timeframe.
Multiple company ownership or complex
relationship between entities is not
monitored
A network of customers and suppliers can all
be related to a small group of individuals
Access to validated documentation or
information from external providers is
difficult
Trade documentation, invoices and payments
can be altered or manipulated.
Bank statements and financial statements
are also open to misuse
Limited collateral required for finance. Expat
business owners have few assets in UAE.
There is less commitment from business
owners to make loan repayments if the
business starts to fail

7. SME Fraud: Statistics
Using market knowledge and data analysis CRIF can share the following snippets
Some Interesting Statistics
Age of company established in country – Recent changes in ownership
Audited Financial Company Accounts – Rapid changes in P&L
Visibility of additional borrowing from other banking providers
Company demographics and payment history within your bank
Changes in application data within a 3 month period

8. WHERE CRIF
CAN HELP

9. Fraud Engine
Governance
Monitor
Behavior
Identify
and
dedupe
Constant Rule
Amendments
InitiativeRoot-Cause  Highly accurate
 Strategy Driven Models
 Utilize multiple data
streams
 Monitored and
configurable
 Over 100 specific rules
 High Performance

10. CRIF Fraud ID
Output Results Analytics
Input data
Behavioural data
Third Party
Bureau data
Registry data
Client level risk score
Affordable limit by product
Customer Value
Collection scoring
Churn models
IRB / IFRS9
Probability of Fraud or Skip
Fraud ID
The CRIF Fraud ID engine utilizes multiple data sources and complex analytics to provide a Fraud Score