Champion Challenger: Enabling Better Fraud Detection

Posted July 24, 2018

Champion Challenger: Enabling Better Fraud Detection

A Look at How ThreatMetrix Customers Can Enhance Policy Management Processes and Supercharge Online Fraud Prevention

Concern over fraud losses and alienating customers have propelled fraud policy management for years. But the increasingly hostile threat landscape has sparked calls for better, faster and more nimble fraud policy management and development.

As the digital landscape continues to evolve and morph, we’re seeing increasingly diverse and unpredictable user behavior, faster payments, the need for real-time decisioning — and an overall growth in complex fraud patterns.

The problem: When it comes to anti-fraud measures, one size rarely fits all. Policies need to address the specific challenges faced by your organization and your customer base, along with the ever-evolving nature of new cyberattacks.

Quantifying Chaos

In fact, risk.net reports that concerns over fraud and new regulatory burdens rank among the top challenges facing organizations in a number of industries—especially banking—in part due to the sheer volume of daily attacks.

Recently, Swedish banks were with high potential losses in the wake of a concentrated phishing attack and in another case, fraudsters armed with confidential credentials made off with $500 million from the Coincheck cryptocurrency exchange.

As anyone in fraud policy management can tell you, continuous tweaks and changes are key to keeping up with these kinds of escalating threats.

But for the larger and more complex organizations, this is not always straightforward. Strong governance is required to de-risk policy changes, with clear delineations in responsibilities, and robust, easily-auditable approval processes. Also required is the ability to quantifiably compare new policies and their implications faster and more accurately before deploying them to live environments.

Fraud Modeling without Fear

As part of the Summer ’18 Release from ThreatMetrix, Champion Challenger is designed to help risk analysts and policy editors test out a new or modified “challenger” policy against an existing “champion” policy without injecting risk into the process.

Analysts can now better manage any head-to-head between a master policy already in production, generating a risk-based decision using a current fraud policy—and a proposed policy that’s in the process of being validated. Both the champion policy and its linked challenger policy are executed simultaneously on the same events, enabling policy editors to directly compare results including policy scores, risk ratings, and reason codes. This allows comparisons to be made based on the results of real-world scenarios and means that ThreatMetrix customers are now free to experiment without fear.

This way businesses can keep pace with changes in consumer behavior and fraud patterns as quickly as they emerge, bolstering their defenses with minimal risk.

Governing for Success

Earlier this year, we introduced ThreatMetrix Maker-Checker, a feature for managing workflow from policy creation through to policy approval. For banks in particular, clear separation of duties between those who edit policies and those who approve them is vital.

For environments where there are numerous analysts, Maker-Checker ensures that there’s an auditable procedure and approved process for any changes to policy.

Champion Challenger means that all proposed changes are tracked, validated and audited and all policy versions are maintained, keeping a record of the history of all the changes.

In summary, by giving organizations the agility they require to neutralize the growing number of threats while bolstering their governance operations, ThreatMetrix customers will be able to continue to improve their fraud detection rates, reduce customer intervention rates and streamline their internal operations.

To learn more, download an exclusive solution brief about Champion Challenger and its role in fraud policy management and governance.

Stephen Topliss

Stephen Topliss

Vice President Product Strategy, ThreatMetrix

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