Development of a Total Cost of Fraud Model


  • A leading global electronic payments network
  • Develop a tool to measure the true cost of fraud in card issuing and acquiring
  • Improve fraud risk management and business decisions
  • Established common analytic framework and standard process for identifying and allocating all costs associated with fraud in the payment system
  • Conducted a regional benchmarking study among 10 issuers and acquirers to validate the applicability of the methodology against the stated objectives
  • Assessment framework and financial model developed to allocate payment system costs

Among the engagement results, the framework helped identify recommendations for one member bank to reduce fraud-related opportunity costs by more than US$5.8M.


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