Cost Savings On Incentives Claims Through Superior Validation Practices

Haris KhanManager, Risk and Compliance

Impact Award 2013

Ranked # 1– 2012

Agenda

• Fraud Trend – Altered Invoices• Voice of the Customer• Latest Threats• Detection, Mitigation and

Remediation

Typical Incentive Fraud Scenario

Customer Purchase Altered Invoice

Lifecycle of a Fraudulent Claim

Program Target

Fraud Execution

Financial Loss

Voice of Customer

Devon Reid, Consumer Promotions Associate

Emerging Threats

Account Takeover

Altered Dates

FictitiousConsumer

Altered Invoices

Evolution of Fraud Detection

360incentives Fraud Detection

Auto Decision

Distance Rule

Duplicate Invoice Check

Duplicate Serial Check

Fraud Database

Altered Sales Date

Altered Invoices

Cross Client Validation

Sales Validation

Consumer AuthenticationAudit Score

Dynamic Risk Scoring

IP and Device ID Validation

Intelligence Analysis

Velocity

High Risk Fraud Alerts

KYC

Fraud Analytics

Address Validation

Non-Compliant & Fraud

Claims Declined for Compliance 9.3%

ClaimsDeclinedfor Fraud

1.017%

Quarterly Claims Yearly Total

Volume Claims Value @ $50/Rebate

Claim Volume 105,000 $ 5,250,000.00 420,000 $21,000,000

Declined for Compliance 9,765 $ 488,250.00 39,060 $ 1,953,000

Declined for Fraud 1,068 $ 53,392.00 4,272 $ 213,570

Quarterly Claims Value @ $50/Rebate

Yearly Total Claim Volume

Claim Volume Declined for Compliance Declined for Fraud0

20000

40000

60000

80000

100000

120000

$-

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

Quarterly Claims Volume Querterly Claims Value

Volu

me

Valu

e

Questions

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