Case study: Isbank and FCase – fraud orchestration overhaul

Türkiye İŞ Bankası, or Isbank, is Turkey’s largest bank and is ranked 96th world’s largest bank. Learn how it drastically reduced fraud and future-proofed fraud operations with the help of FCase.

1. Quick facts

Challenges set:

• Future-proof fraud operations for decades to come by combining modern and legacy fraud systems
• Reduce fraud
• Enable fraud investigators to be more efficient, to do more for the same (process more fraud cases)
• Enable the revised Payment Services Directive (PSD2) reporting

Results:

• Delivered: fraud system(s) orchestration on an enterprise level, one operations for all fraud
• Reduced: Fraud by 30%
• Reduced: Fraud investigation times (9x faster)
• Delivered: PSD2 (on the fly)
• Additional: Collaboration between customer services & fraud investigations
• Additional: Reduced customer friction due to less false positives

2. About Isbank

The bank operates across several business segments including corporate, commercial, retail banking, private banking, and treasury and investment banking. The corporate segment includes financing, instant banking, and foreign trade transactions for small to medium size enterprises (SMEs). The commercial segment provides investment loans, foreign currency trading, tax collections, payrolls, and bill collections. The retail banking segment offers consumer loans, deposits, credit cards, accounts, remittances, safe-deposit boxes, insurance, and investment accounts.

The private banking segment deals with financial and cash management for high-income individuals. The treasury and investment banking segment is involved in securities trading, money market transactions, derivative transactions, syndications, and securitisations.

3. The challenge

Like many other banks, Isbank has implemented fraud detection technologies across many service channels, from biometric authentication to transaction fraud monitoring, in total five fraud detection technologies in place.

With over 17 million customers, Isbank’s fraud operations were already under strain due to high work volume. Fraud operations teams were growing daily to handle the increased workload. This is a problem shared by most Tier 1 banks as well.

Isbank’s fraud operations were defragmented due to the underlying fraud data, each channel acting as a silo, isolated and cut off from the others (e.g. A-E –>).

Information sharing was limited and antiquated, fraud analyst (across A-E) had to exchange data via email. This made identifying cross-channel fraud complex and almost impossible (A-E did not work together resourcefully, and F “Fraudster” had it easy to navigate past A-E).

In addition, inbound fraud reporting by bank call center agents (G), such as stolen bank cards, chargebacks, or suspicious transactions, were manually reported to fraud analysts through email as well. These antiquated fraud management processes created issues with quantitative analysis and reporting. For instance, generating monthly fraud statistics were time-consuming, so much so there was an entire team dedicated to fraud reporting only. Management was also unable to accurately measure the performance and quality of the fraud operations team.

In essence, fraud was growing due to an increase in business channels and the fraud teams had a significant challenge to keep up, Fraud operations needed a future-proofed method of handling more frauds at the same time as reducing the overall fraud.

4. The solution

When FCase was introduced to Isbank, their fraud management consisted of five different real-time fraud prevention systems under a heavy transaction load (across A-E, with each having their own front end –>).

After a thorough analysis, we decided to connect all fraud prevention systems into FCase fraud operations, to enable the fraud investigations teams to have a 360 degree view of the fraudster, which in turn enabled clearer and faster decision making at an enterprise level, at the same time reducing fraud overall (including cross channel fraud).

5. The results

• 3 x fraud cases processed
• 30% less fraud
• 9 x faster fraud investigations
• Fraud insight integration into CRM
• PSD2 fraud reporting compliance

6. About FCase

FCase is a fraud orchestrator which takes fraud management systems from basic, standalone detection to an enterprise-focused approach. This holistic view of fraud data allows standardising fraud case interaction, fraud management processes, governance models, performance and quality indicators.

FCase’s next generation technologies integrate distinct data platforms, collecting information from multiple fraud detection sources to manage fraudulent activity in real-time using adaptive analytics.

FCase was founded in 2017 and is headquartered in London, UK. For more information on how it is changing the way fraud operations is conducted, please feel free to contact FCase.