Creating a Fraud Taxonomy and Incident Playbooks to Shrink MTTR
Learn how to design a fraud taxonomy and effective incident playbooks to enhance your response times and protect your organization.
A well-defined fraud taxonomy and playbook can turn chaos into control.Back to all posts
## The $50K Hallucination Imagine this: your AI model just hallucinated in production, leading to $50K in customer refunds. The chaos that ensues from a single fraud incident can cripple operations, tarnish brand reputation, and divert engineering resources to damage control. Without a well-defined fraud taxonomy and a
## Why This Matters For engineering leaders, the stakes are high. Fraud incidents not only cost money but also erode trust within your organization and with your customers. A well-structured fraud taxonomy helps you identify and categorize risks, enabling quicker responses. This clarity is essential for creating robust
## How to Implement It 1. **Define Your Fraud Taxonomy**: Start by categorizing fraud types based on risk level—high, medium, and low. Include categories like identity theft, account takeover, and payment fraud. This classification will guide your incident response efforts. 2. **Develop Incident Playbooks**: For each,
## Key Takeaways - Always maintain a clear fraud taxonomy that categorizes fraud types by risk level. - Implement incident playbooks that detail response protocols for each category. - Train your teams on decision trees that facilitate rapid response to fraud signals.
## Example: Real-World Application Consider a financial institution that faced a significant spike in account takeovers. By implementing a fraud taxonomy, they categorized incidents by severity and developed playbooks that outlined steps for detection and response. This approach reduced their MTTR significantly and
## Questions to Consider - How often should we review and update our fraud taxonomy? - What metrics should we track to measure the effectiveness of our incident playbooks?
Key takeaways
- Establish a clear fraud taxonomy to categorize threats effectively.
- Create incident playbooks that streamline response efforts and improve MTTR.
- Utilize concrete signals like capture anomalies and voice mismatches for better detection.
Implementation checklist
- Define fraud categories based on risk levels and incident types.
- Document response protocols for each fraud category.
- Train your team on using decision trees for incident response.
Questions we hear from teams
- What is a fraud taxonomy?
- A fraud taxonomy is a structured classification of different types of fraud, categorized by risk levels and incident types.
- How can incident playbooks improve MTTR?
- Incident playbooks provide clear protocols for responding to fraud incidents, which can significantly reduce response times and improve resolution efficiency.
- What metrics should I track for fraud incidents?
- Key metrics include mean-time-to-resolution (MTTR), false positive rates, and the number of incidents categorized by severity.
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