Weekly Risk Reviews: Fine-Tuning Your Fraud Detection Strategy

## The $50K Hallucination Imagine this: your AI model just hallucinated in production, leading to a $50K loss in customer refunds. This scenario underscores why engineering leaders must prioritize risk management in their hiring processes. Fraud attempts are becoming increasingly sophisticated, with attackers employing

deepfakes and proxy candidates to infiltrate your systems. If your risk reviews aren't robust and timely, you risk not only financial losses but also reputational damage that can take years to recover from.

## Why This Matters For engineering leaders, understanding the stakes is crucial. A single fraud incident can derail your hiring strategy and erode trust with stakeholders. Weekly risk reviews allow teams to stay ahead of potential fraud attempts by analyzing leading indicators that predict drop-off and fraud.

By tuning thresholds and step-up rules based on real-time data, you can create a resilient hiring pipeline that adapts to evolving threats. This proactive approach not only mitigates risks but also fosters a culture of continuous improvement within your organization.

## How to Implement It Step 1: Set up a weekly review cadence with key stakeholders, including engineering, security, and compliance teams. This ensures all perspectives are considered. Step 2: Integrate telemetry tools that provide real-time insights into candidate behavior and system performance. Use metrics like:

- Fraud Attempt Rate (FAR) - False Reject Rate (FRR) - Review Completion Rate Step 3: Define clear risk thresholds and escalation policies. For example, if a candidate's activity triggers a specific score, escalate to a manual review to mitigate potential fraud. Step 4: Document findings from each review to track

changes over time. This will help refine your fraud detection strategies and improve overall efficiency in your hiring process.