Building a Fraud Taxonomy: Incident Playbooks for Rapid Resolution
Create a fraud taxonomy that enables quick responses to incidents and minimizes MTTR.
A clear fraud taxonomy and incident playbooks can save you from costly mistakes.Back to all posts
## The $50K Hallucination Your AI model just hallucinated in production, costing $50K in customer refunds. A single line of legacy code triggered a cascade of errors, sending shockwaves through your operational metrics. This scenario is not just a cautionary tale; it’s a wake-up call for engineering leaders to fortify
their defenses against fraud. Without a well-defined fraud taxonomy and incident playbooks, the mean time to resolution (MTTR) can skyrocket, leading to significant financial and reputational damage. ## Why This Matters For engineering leaders, the stakes are high. Fraud incidents can derail not just your project but
your entire organization. A robust fraud taxonomy helps in identifying patterns and categorizing incidents, enabling faster resolution. When an incident occurs, a clear playbook allows teams to respond swiftly, minimizing the impact on operations and customer trust. Furthermore, having documented procedures assists in
training new team members and ensures that everyone knows their role in the response process. ## How to Implement It Step 1: Define Fraud Categories - Categorize incidents based on signals such as capture anomalies, voice mismatches, and mismatch-to-ID. - Use historical data to guide your categorizations, ensuring a
comprehensive understanding of potential fraud types. Step 2: Develop Decision Trees - Create decision trees that guide teams through the response process, from initial detection to resolution. - Include branches for different types of fraud, detailing the appropriate responses for each scenario. Step 3: Create Run
books - Develop runbooks that outline the evidence handling procedures, reviewer ergonomics, and escalation paths. - Ensure that runbooks are easily accessible and regularly updated to reflect new fraud patterns and technologies. ## Key Takeaways - Always maintain a clear fraud taxonomy to identify and categorize new
threats quickly. - Implement decision trees to streamline the incident response process, reducing confusion during high-stakes moments. - Regularly update runbooks to ensure they reflect the latest best practices in evidence handling and reviewer ergonomics.
Related Resources
Key takeaways
- Establish a clear fraud taxonomy to categorize risks.
- Implement decision trees for quick incident resolution.
- Create runbooks that enhance reviewer ergonomics.
Implementation checklist
- Define fraud categories based on capture anomalies and mismatches.
- Develop a decision tree for incident response.
- Create runbooks detailing evidence handling procedures.
Questions we hear from teams
- What is a fraud taxonomy?
- A fraud taxonomy is a structured classification of different types of fraud incidents, helping organizations categorize risks and streamline responses.
- How can decision trees help in fraud incidents?
- Decision trees guide teams through the response process, providing clear steps to follow based on the type of fraud detected.
- What should be included in a runbook?
- A runbook should outline evidence handling procedures, reviewer ergonomics, and escalation paths to ensure effective incident management.
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