Efficient Case Management Strategies

January 20, 2019
Read Time: 3 minutes

#Fraud #Risk #KYC #AML #Strategy

Here at Sphonic we work with a diverse selection of financial institutions ranging from banks to online gaming companies. KYC (Know Your Customer) has never been more important than it has been today and our clients present new challenges to us ever month. In a world where consumers are no longer present in their physical form, we need to be clever about how we manage risk without even seeing a customer in the flesh.

Sadly, fraud attacks are also on the rise and making life more difficult for every single one of our clients. 2018 saw a rise of 19% on 2017 from £565.4 million to £671.4 million in unauthorised fraud payments on UK-issued cards. Large multi-national banks and challenger banks alike are facing the biggest challenge we have seen when it comes to combating fraud as card payments reached a new peak of 20.4 billion transactions during the year.

We spoke to the fraud and risk managers in our client base about what they are doing to deal with such large volumes. Almost every financial institution has some sort of case management system in place that can be used to sort through cases that need manual review when something out of the ordinary is identified by the fraud system. The current process for case management generally revolves around a system alerting a fraud team to a case that has breached a risk score threshold. The fraud team then collaborate within their case management system and take action on that individual case – either accepting, rejecting or escalating it.

However, the limitations in this strategy are starting to show, with the number of cases increasing every day and thresholds being broken more and more often. It is now very hard for a bank to determine what is a safe threshold for one consumer vs another. The sheer volume of cases that come across a compliance desk every day is also proving hard to keep on top of and for many institutions there has been a recent push to move to more automated systems, but automation can bring its own risks. Sometimes human interaction is necessary.

The core Sphonic team have been in the fraud and risk world since the start of the internet age and we have seen case management strategies evolve since then. Our Workflow Manager product has been providing automation to the on-boarding and transaction monitoring processes of our clients for 8 years now. However, we have felt the pain of case management and decided we want to contribute a more efficient tool and strategy beyond our workflow system.

In order to stay on top of the high volumes of potential fraud attacks and the day-to-day struggle of managing case lists, we have built a Case Management System that takes a real-time stream of the data being checked against a transaction or a customer account opening in the Sphonic Workflow Manager and displays it in ‘trends’. The Trend View is where you start your day. From here you can see what anomalies might be occurring in your workflow, in real-time. But the big difference is that you make the decision as to which anomalies you want to dig into, rather than being thrown everything that breaches a threshold. For example, you could see a large spike in KYC failures in Brazil. Upon investigation you drill into this ‘spike’ and see a list of cases that caused it. From there you can decide to action all cases (Accept / Reject / Escalate) or drill into an individual case in order to analyse the results of specific checks that have been made against that record.

Our clients have been using the Sphonic Case Manager on top of Sphonic’s Worklfow Manager for 6 months now, and the feedback has been overwhelmingly positive and much of it is directed towards the fact that day-to-day work has been made more manageable for the teams responsible for managing these cases. Being able to decide how you are going to work at the start of your day by viewing the current trends across your customer base has helped our clients bring some control back to their fraud and risk process.

If you are interested in seeing a demo of Sphonic’s Case Manager, please contact us via the website Contact page.