Orchestration: how to welcome more genuine customers and identify fraudsters earlier

Signicat teams up with the International Compliance Association to investigate the challenges and outlook for orchestration, digital identity, fraud and compliance.

London, 28^thof February 2024 - Fraud and the costs of preventing fraud are rising. Cybercrime alone cost the global economy $8 trillion in 2023, which is set to increase 15% per year over the next three years. Meanwhile, $63 billion was spent worldwide on fraud detection and prevention in 2023.

It can be hard for businesses to stay ahead of the fraudsters. Plus, remain laser-focused on devising great experiences to welcome more genuine, right-first-time customers. All the while, criminals are busy devising new scams and evading detection. And regulators are equally industrious, publishing more than 200 regulatory updates daily and levying $55 billion in AML fines alone since the 2008 financial crisis.

The fully-loaded cost of non-compliance

If fraud levels are at an all-time high, so are the stakes of failing to manage fraud correctly. The fallout goes beyond fines. Businesses must maintain operational resilience, protect their brand, reputation and ability to trade. That’s the bottom line.

Against this backdrop, it’s easy for businesses to lose focus. Banks, fintechs, retailers, and iGaming operators don’t go into business to manage fraud. Rather, to improve their customers’ financial lives. Or to surprise, delight, and entertain them.

Fighting fraud is often a by-product rather than a business objective of expanding into new countries, implementing digital transformation, competing in a commoditised market and so on. But before they know or even realise it, fraud management has become an activity in itself for many businesses.

Maybe it’s time for a hard reset?

Orchestration is a new way to manage an old problem. Orchestration platforms integrate multiple applications and services to automate a particular process. In the case of Signicat’s RiskFlow Orchestration, that’s digital identity solutions for the entire customer lifecycle.

“Most organizations spend a huge amount on tech platforms but haven’t thought about cohesion. Orchestration was designed to remove data silos, drive a better understanding of good and bad actors, and allow firms to meet regulatory obligations without compromising on them,” says Riten Gohil, Digital ID, Fraud & AML Orchestration Evangelist at Signicat.

In a recently published ebookin conjunction with the International Compliance Association (ICA), Signicat experts consider orchestration, its challenges and outlook for the future.

“We are delighted to have collaborated with Signicat on this ebook on orchestration. Orchestration is just one part of broader discussions around technology that ICA cultivates for our global compliance community, and we are thrilled to have Signicat's expert insight on orchestration and how it can help compliance professionals” says Pekka Dare, President, International Compliance Association. “We recognize that technology's impact on compliance has been profound; understanding how technology has and will develop is crucial to ensuring compliance professionals can continue to meet regulatory requirements, satisfy stakeholder demands and help firms do the right business in the right way”, he adds.

The free downloadable resource Orchestration: The key to harmonizing fraud, digital identity and AML compliance discusses ways to:

• Optimize customer lifecycle management: 68% of customers abandon sign-up due to a poor user experience, according to Signicat’s latest Battle to Onboardreport. How can businesses use orchestration to boost conversion, accept more genuine customers and identify fraudsters earlier in the process?
• Super-charge compliance: UK financial services organizations alone spend £35 million annually on financial crime compliance. How can orchestration minimize multi-vendor headaches and risk? And connect vast data troves so businesses can truly know their customers and prospects?
• Maximize growth and profitability: With fraud losses and prevention costs at an all-time high, how can businesses use automation to speed up expansion and time-to-revenue, while minimizing compliance admin and regulatory risk exposure?

The regulated sectors certainly need to reinvent themselves and search for solutions to the rising fraud wave they are going through. Technology, data and its analysis is undoubtedly one of the best allies to detect fraudulent patterns or behaviours early on and implement measures to stop it.