Davina Myburgh, director: product, innovation solutions group at TransUnion.

Davina Myburgh, director: product, innovation solutions group at TransUnion.

There are several crucial elements to effective fraud prevention; one of the most important is having strong internal controls in place. In fact, a recent KPMG survey revealed that weak internal controls are a contributing factor in 61% of fraud incidents.

"Many businesses are battling to find ways to verify the true identity of an individual, particularly through digital channels," says Davina Myburgh, director: product, innovation solutions group at TransUnion. Myburgh will be presenting on ‘The importance of adaptive fraud risk strategies, which ensure customer satisfaction', at the ITWeb Security Summit 2018, to be held from 21 to 25 May, at Vodacom World, in Midrand.

She says face-to-face verification processes, for example, are a lot stronger than non-face-to-face ones. "However, there are also many different identities an individual can have that need to be verified, such as the actual identification of the person, identification of the device, and verification of the device, telephone and address behaviours."

Xhead = Adaptive fraud risk strategies

This is where an adaptive fraud risk strategy, or a strategy that uses various solutions to identify anomalies and patterns of risk, comes in. "It needs to use traditional as well as alternative data sources and be integrated within the relevant customer-focused systems to ensure a streamlined and customer-friendly solution."

This gives the business a more convenient and customer-friendly onboarding process, while finding a good balance between risk detection and customer satisfaction.

Delegates attending Myburgh's talk will hear about data and the understanding of how pieces of data connect and can derive insight into an individual's identity, along with the identity of their device.

"This is a critical point in any company's fraud strategy. As fraudsters always find new ways of getting around fraud controls, it is imperative that fraud strategies are robust and flexible enough to meet current and future needs."