If financial institutions really want to make a meaningful difference to reducing fraud and
saving thousands of victims from losing money they never realized was at risk due to the
skillful manipulation of them to believe the transaction they were doing was legitimate, is it
not then incumbent on the FIs to create a robust fraud prevention framework to prevent
fraud from happening in the first place?
The LinkedIn post below speaks to the essence of how this can be done and successfully
carried out to make a discernible difference in preventing the number of frauds perpetrated
against financial institutions and their customers.
It is worth noting and reading the relevant professional responses to this well thought out
and insightful post.
Roshan Kulasooriya , CFE, CAMS, PMP, PMI-RMP, PMI-ACP
Manager โ Fraud Deterrence & Investigations | Fraud Risk Governance | CFE, CAMS, PMP, PMI-RMP | Compliance & Financial Crime | Power BI & SQL Analytics | ESG & Digital Trust
๐ง๐ต๐ฒ ๐๐๐ฟ๐ผ๐ป๐ด๐ฒ๐๐ ๐ณ๐ฟ๐ฎ๐๐ฑ ๐ฐ๐ผ๐ป๐๐ฟ๐ผ๐น๐ ๐ฎ๐ฟ๐ฒ ๐ป๐ผ๐ ๐๐ต๐ฒ ๐ผ๐ป๐ฒ๐ ๐๐ต๐ฎ๐ ๐ฐ๐ฎ๐๐ฐ๐ต ๐ณ๐ฟ๐ฎ๐๐ฑ. ๐ง๐ต๐ฒ๐ ๐ฎ๐ฟ๐ฒ ๐๐ต๐ฒ ๐ผ๐ป๐ฒ๐ ๐๐ต๐ฎ๐ ๐บ๐ฎ๐ธ๐ฒ ๐ณ๐ฟ๐ฎ๐๐ฑ ๐ฑ๐ถ๐ณ๐ณ๐ถ๐ฐ๐๐น๐ ๐๐ผ ๐ฐ๐ผ๐บ๐บ๐ถ๐ ๐ถ๐ป ๐๐ต๐ฒ ๐ณ๐ถ๐ฟ๐๐ ๐ฝ๐น๐ฎ๐ฐ๐ฒ.
ย
Many organizations still measure success by the number of fraud cases detected.
ย
But mature organizations ask a different question:
ย
“๐๐ผ๐ ๐บ๐ฎ๐ป๐ ๐ณ๐ฟ๐ฎ๐๐ฑ ๐ผ๐ฝ๐ฝ๐ผ๐ฟ๐๐๐ป๐ถ๐๐ถ๐ฒ๐ ๐ฑ๐ถ๐ฑ ๐๐ฒ ๐ฒ๐น๐ถ๐บ๐ถ๐ป๐ฎ๐๐ฒ ๐ฏ๐ฒ๐ณ๐ผ๐ฟ๐ฒ ๐๐ต๐ฒ๐ ๐ฏ๐ฒ๐ฐ๐ฎ๐บ๐ฒ ๐ถ๐ป๐ฐ๐ถ๐ฑ๐ฒ๐ป๐๐?”
ย
The future of fraud risk management is shifting from investigation to prevention.
ย
That requires more than technology. It requires:
ย ย โข Strong governance
ย ย โข Clear accountability
ย ย โข Trusted data
ย ย โข Ethical leadership
ย ย โข A culture where employees feel responsible for protecting the organization, not just complying with policies.
ย
๐ง๐ต๐ฒ ๐ฏ๐ฒ๐๐ ๐ณ๐ฟ๐ฎ๐๐ฑ ๐ฝ๐ฟ๐ผ๐ณ๐ฒ๐๐๐ถ๐ผ๐ป๐ฎ๐น๐ ๐ฎ๐ฟ๐ฒ ๐ป๐ผ ๐น๐ผ๐ป๐ด๐ฒ๐ฟ ๐๐ถ๐บ๐ฝ๐น๐ ๐ถ๐ป๐๐ฒ๐๐๐ถ๐ด๐ฎ๐๐ผ๐ฟ๐.
ย
They are business partners who strengthen resilience, improve decision-making, and help organizations build trust with customers, regulators, and stakeholders.
ย
Because in today’s environment…
ย
๐ง๐ฟ๐๐๐ ๐ถ๐ ๐ป๐ผ ๐น๐ผ๐ป๐ด๐ฒ๐ฟ ๐ฎ ๐ฏ๐-๐ฝ๐ฟ๐ผ๐ฑ๐๐ฐ๐ ๐ผ๐ณ ๐ด๐ผ๐ผ๐ฑ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐. ๐๐ ๐ต๐ฎ๐ ๐ฏ๐ฒ๐ฐ๐ผ๐บ๐ฒ ๐ผ๐ป๐ฒ ๐ผ๐ณ ๐ถ๐๐ ๐บ๐ผ๐๐ ๐๐ฎ๐น๐๐ฎ๐ฏ๐น๐ฒ ๐ฎ๐๐๐ฒ๐๐.
ย
How is your organization measuring the success of its fraud risk programme, by detecting cases or by risks prevented?
#๐๐ฟ๐ฎ๐๐ฑ๐ฅ๐ถ๐๐ธ๐ ๐ฎ๐ป๐ฎ๐ด๐ฒ๐บ๐ฒ๐ป๐ #๐๐ผ๐๐ฒ๐ฟ๐ป๐ฎ๐ป๐ฐ๐ฒ #๐๐ป๐๐ฒ๐ฟ๐ป๐ฎ๐น๐๐ผ๐ป๐๐ฟ๐ผ๐น๐ #๐ฅ๐ถ๐๐ธ๐ ๐ฎ๐ป๐ฎ๐ด๐ฒ๐บ๐ฒ๐ป๐ #๐๐ถ๐ด๐ถ๐๐ฎ๐น๐ง๐ฟ๐๐๐
ย
Mario Fazekas CFE, LPECย
How does an organization quantify the frauds that were prevented?
Roshan Kulasooriya , CFE, CAMS, PMP, PMI-RMP, PMI-ACP
Manager โ Fraud Deterrence & Investigations | Fraud Risk Governance | CFE, CAMS, PMP,
PMI-RMP | Compliance & Financial Crime | Power BI & SQL Analytics | ESG & Digital Trust
Mario Fazekas CFE, LPEC Great question. Prevented fraud is difficult to quantify precisely because the event never materialized. Organizations can instead measure reduced fraud exposure through attempted fraud blocked, declining high-risk exceptions, control effectiveness, and estimated losses avoided based on historical data. The focus should be on demonstrating measurable reduction in fraud opportunity and residual risk.
Amagove Lwichi, CFE 3rd+Amagove Lwichi, CFEย
Fraud Risk & Payments Risk Specialist | PSP & Fintech Risk Strategy | Chargebacks,
Merchant Risk & Fraud Prevention |ISMS Lead Implementer | Building Trust in Digital
Payments
Absolutely Roshan! Mature fraud management is about shifting from detecting losses to eliminating opportunities, with governance, data, and prevention controls working together to make fraud harder to execute in the first place.
Roshan Kulasooriya , CFE, CAMS, PMP, PMI-RMP, PMI-ACP
Manager โ Fraud Deterrence & Investigations | Fraud Risk Governance | CFE, CAMS, PMP,
PMI-RMP | Compliance & Financial Crime | Power BI & SQL Analytics | ESG & Digital Trust
Amagove Lwichi, CFE Absolutely. That shift from detecting losses to reducing the opportunity for fraud is where fraud risk management becomes truly strategic. Strong governance, intelligent use of data, and well-designed preventive controls can make fraud not only easier to detect, but significantly harder to execute. Thanks for adding this perspective.
