risk management for risky times
DESCRIPTION
The slides for a talk I gave at Amazon.TRANSCRIPT
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http://fraudbackstage.blogspot.com
@ohadsamet
RISK MANAGEMENT FOR RISKY TIMES
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ABOUT
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The Challenge
Solutions That W
orkThe M
arket
1. Who’s Out There?
2. The Payments Market Beyond eCommerce
3. Disruption, the Next Generation
4. Risk Management is Not What it Used to Be
5. Consumer Risk is a Solved Problem. Or is it?
6. …But Seller Risk Definitely Isn’t
7. (Some Popular Risk Equations)
8. Data Overload
9. The Single Source of Truth
10. Iterate, Iterate, Iterate
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WHO’S OUT THERE?
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Why don’t you become a payments provider?
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THE PAYMENTS MARKET BEYOND ECOMMERCE
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DIGITAL
MARKETPLACES
LOCAL-MOBILE-OFFLINE
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DISRUPTION NEXT-GEN
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THE METHOD: SHORT TERM CREDIT
THE WALLET: PAYROLL
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RISK MANAGEMENTIS NOT WHAT IT USED TO BE
Technology Challenge
Core Part of the Product
The Factory Approach *
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CONSUMER RISK IS A SOLVED PROBLEM
I can pay!
I’m that Guy!
?
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OR IT IS?
Fake IdentitiesStolen IdentitiesAccount Take Over
Hacked MachinesReturning
FraudstersCrime Rings
Device Fingerprinting
BlacklistsLimits
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THE INITIAL ENCOUNTER
TRUST ME
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MERCHANT RISK ISN’T SOLVED
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RISK “EQUATIONS”
P[LOSS] * [EXPOSURE] = RISK
DATA + DOMAIN EXPERT + ITERATIONS= QUALITY DECISION
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DATA OVERLOAD
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CONTEXT IS EVERYTHING
.edu.edu
.edu .edu
.edu
Citi CITIBANK SOUTH DAKOTACitybank
BofA BOAAmerica BankBANK OF
AMERICA
KNOW YOUR CUSTOMERS
DON’T USE BLACKLISTS
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THE SINGLE SOURCE OF TRUTH *
THE BASIC CAPABILITY: TXN REVIEW
FOCUS ON THE WHY, FOCUS ON PEOPLE
GENERALIZE
ANALYTIC STORYTELLING
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ITERATE, ITERATE, ITERATE
Instrumentation and Tracking
Gap Analysis
Stories
Feature Engineering
Modeling