Combat Banking Fraud in a Changing Disputes Landscape

As consumer reporting dispute volumes rise and regulatory requirements grow in complexity, furnishers must keep up with the changing landscape. Here’s how you can combat fraud in a changing disputes landscape.

The CFBP advised this year that 38% of complaints were due to ”incorrect information on the credit report,” which can include identity theft.

We’ve gathered our surefire methods for fraud inclusion in the disputes process. By proactively implementing these measures, you can improve the customer experience and reduce complaint volumes caused by fraud.

Make Fraud Disputes a Part of Your Credit Reporting Process

The credit reporting disputes landscape is constantly changing, and furnishers are revamping processes in an effort to keep up with rising volumes and regulatory requirements. While managing these volumes, the potential for fraud cannot be overlooked. This year, the CFPB advised that 38% of complaints were due to “improper use or fraud alerts; on the credit report,” which can include identity theft.

Disputes claiming fraud must be appropriately identified and managed by subject matter experts (SMEs) for proper investigation. Furnishers may be vulnerable to legal action if they don’t conduct reviews accurately and thoroughly. 

Surefire Methods for Fraud Inclusion

Accounting for fraud disputes by proactively implementing the following measures can improve the customer experience and reduce compliant volumes caused by fraud.

Develop policies and procedures to include fraud.

• Design procedures to align fraud disputes with enterprise processing
• Incorporate an investigation process that provides detail around fraud themes; account take-over, reinvestigations, claims of account fraudulently opened

Tip: When the dispute is confirmed as fraud, remove related inquiries and fix inaccurate credit reporting.

Conduct a Comprehensive Reasonable Investigation for Fraud Disputes

In disputes cases identified as fraud, analyze the customer data in the system of record, as it may be inaccurate because of identity theft.

Provide an open communications channel between fraud and disputes to foster efficient handoffs. This way, when a customer claims a dispute and the dispute team identifies it as fraud – it can quickly go to the fraud team, and vice versa.

Tip: Assign a dedicated fraud SME to review fraud disputes and determine if an investigation is warranted.

Communicate Effectively Internally Across All Lines of Business (LOB) and With Customers

Effective communication across your LOBs (disputes, fraud and collections) can help you identify customer impacts and uncover disputes early.

“First pay defaults” in collections may often be identity theft fraud and that information can be used by disputes agents in the resolution process.

Tip: Consider agent outreach to consumers when fraud is identified and inform them that credit reporting consequences from fraud will be resolved.

Act Now to Ensure You’ve Covered Fraud in Disputes

Bridgeforce can help you assess your credit reporting disputes management process with an eye to fraud to identify opportunities that reduce costs and increase efficiencies in disputes resolution. Our real experience in all aspects of credit reporting can help you set your vision and achieve real results.

Combat fraud in this changing disputes landscape by contacting Bridgeforce here.