First Party Fraud - impacts and solutions for mail order and insurance
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Synopsis
First party fraud is notoriously difficult to define, detect and prevent – with its financial impact often hidden as bad debt or written off as claims losses.
The harsh reality is that first party fraud – such as entering into credit agreements with no intention of honouring obligations or inflating insurance claims, is estimated to cost the private sector £2.6bn per year, that’s a staggering 28% of the total £9.5bn in known frauds.
In this paper, the authors discuss:
- A definition of first party fraud with mail order and insurance examples.
- Examine the key factor of payment intent as an identifiable data attribute.
- Outline key techniques to reduce losses through first party fraud.
- Detail a mail order case study that increased ROI on acquisition by 14%
- Detail a motor insurance case study demonstrating how payment intent flags those most likely to make fraudulent insurance claims.
Mail order companies looking to reduce losses through non payment, and insurers looking to reduce their claims loss ratios now have a new weapon in their toolkit.
About the authors
Victoria is a recognised industry leader in the mail order and catalogue shopping industry. Following her early career with Time Life, Victoria designed and ran the direct selling model for Selfridges before establishing herself as a sought after consultant advising many of the country’s best loved home shopping companies. More »
John joined Fraudscreen, to take on full accountability for the sales and marketing function, from Experian, where he was most recently sales & marketing director for the UK integrated marketing division. Previously, his 12 year career with address management software specialists, QAS, saw John occupy UK and International sales director roles as well as a highly successful period as country manager in Australia, where he established the business from a zero base. More »
Who should read this paper?
This paper has been written for professionals in the home shopping / mail order sector, and also in the insurance industries. The paper will be of particular interest to mail order companies who offer instalment and credit payment options. In the insurance industry, pricing, underwriting and claims managers will be interested to learn how payment intent can assist them in their efforts to reduce claims loss ratios.
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