Building a Fraud Taxonomy and Incident Playbooks to Shrink MTTR
Learn how to create a robust fraud taxonomy and actionable incident playbooks that significantly reduce mean-time-to-resolution (MTTR) for fraud-related incidents.
A robust fraud taxonomy and playbook can save you both time and money during critical incidents.Back to all posts
## The $50K Hallucination Imagine your AI model just hallucinated in production, resulting in $50K in customer refunds. This scenario isn’t just a hypothetical; it’s a reality for many engineering teams that lack a robust fraud response framework. The stakes are high—lost revenue, damaged reputation, and a stressed-out
team scrambling to identify and fix the issue. Without a clear fraud taxonomy or incident playbook, you risk escalating the problem instead of resolving it efficiently.
## Why This Matters For engineering leaders, understanding the critical nature of fraud incidents is essential. Each unresolved incident can lead to significant financial losses and operational disruptions. A well-defined fraud taxonomy allows teams to categorize incidents quickly, while effective playbooks streamline
responses, reducing MTTR and enabling teams to focus on innovation rather than firefighting. When your systems are under attack, speed and clarity become your most valuable assets.
## How to Implement It 1. **Define Your Fraud Categories**: Start by identifying the types of fraud that are most relevant to your organization. Consider categories like identity fraud, payment fraud, and account takeover. 2. **Create Decision Trees**: Develop decision trees that guide your team through the assessment
process. For instance, if a voice mismatch is detected, your tree should lead to immediate verification steps or escalation protocols. 3. **Develop Incident Runbooks**: Create detailed runbooks for each fraud type, outlining the steps to take from detection to resolution. Include evidence handling procedures to ensure
that your team can act swiftly and effectively. 4. **Train Your Team**: Conduct regular training sessions to familiarize your team with the taxonomy and playbooks. This will ensure everyone knows their role during an incident, which can drastically reduce resolution time and confusion during high-pressure situations.
Key takeaways
- Establish a clear fraud taxonomy to identify and categorize incidents effectively.
- Implement incident playbooks that guide teams through response actions.
- Utilize concrete signals for quick incident assessment and resolution.
Implementation checklist
- Define fraud categories relevant to your operations.
- Create decision trees for rapid incident assessment.
- Develop runbooks that outline clear response procedures.
- Train your team on signals to look for during incidents.
Questions we hear from teams
- What is a fraud taxonomy?
- A fraud taxonomy is a structured framework that categorizes different types of fraud incidents, enabling faster identification and response.
- How can incident playbooks reduce MTTR?
- Incident playbooks provide clear, actionable steps for teams to follow during a fraud incident, significantly speeding up the resolution process.
- What signals should we monitor for fraud detection?
- Concrete signals include capture anomalies, voice mismatches, and mismatch-to-ID checks that can indicate potential fraud.
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