Modern Insurance Magazine Issue 65

Jonathan Drake
IMPROVING AGILITY,
MAINTAINING INTEGRITY
Technology continues to improve our lives in many ways.
It makes many tasks infinitely easier; we have access
to exponentially more data than ever before, and the
demarcation between reality and virtual reality seems to
be ever decreasing.
Consumer expectation has changed; our customers rightfully expect
greater transparency, and a high standard of service delivered to
them quickly. Exciting new tools help us to build capabilities that
deliver what the customer expects, but is fraud getting worse, or
are we just getting better at stopping it? I am frequently asked
this question, often followed by queries asking how we are using
technology to stop fraudsters in their tracks.
For me, there is some truth in the quote ‘the more things change,
the more things stay the same’. At a basic level, all fraudsters
take a genuine process and exploit that for their own gain. Whilst
the methods and tools they use have clearly become far more
sophisticated, the basic premise remains unchanged. And while
it may be convenient to think of fraud as a problem that can be
solved, given the earliest reported frauds occurred circa 300B.C.,
the likelihood of even the best technology stopping the problem
altogether is very low.
We see cyber-enabled fraud and risks increasing, but volume isn’t
the only indicator. With methods changing, we are also finding
and reporting on more cases than ever before. Complexity is also a
measurement, and cyber enablement arguably makes it easier for the
would-be fraudster to do many things, such as creating a fake alias,
altering an image, or even stealing data.
However, it’s not all bad news, and we need to remember the
fact that most people are still genuine. Whilst technology creates
opportunities for fraudsters, it also enables the industry to build
multiple layers and controls. This not only helps to identify fraud,
but more importantly, it helps the business to achieve its goals and
protect its honest customers. The ever-increasing blend of human
expertise and machine intelligence means that trends and issues can
be identified in record time.
Our key areas of focus lie around…
Agility. The world of fraud is changing faster than ever before. We
must monitor and respond to those trends very quickly, whether
that means re-training machine learning models, or introducing new
controls.
Integrity. Whilst fraudsters are not bound by law and regulations, we
are. It is therefore essential to maintain expected standards, whether
that relates to the tools we use, the way we process data, or the
outcomes we deliver to customers.
People. Our people are one of our greatest strengths in fighting
fraud, and we are always introducing new technology to support
them. Automating basic tasks frees their time for complex issues,
improving our agility whilst maintaining our integrity.
Ben Fletcher,
Head of Financial Crime, LV= General Insurance
FIGHTING MALICIOUS
INSIDER THREATS
Today’s digital world presents businesses with an
ever-evolving list of threats to navigate, but ‘Insider Risk’
is one that has been with us since the start, and it will never
go away.
But what is it? Well, if you need to ask, then you’re probably not
doing enough to guard yourself against it! Insider risk is a threat
to a firm that comes from its people. These can be employees,
former employees, contractors or business associates – essentially
anyone who has insider information. We all want to think the best of
the people we work with, but it’s important to remain vigilant and
protect yourself, your brand and your customers. Today, I’ll focus on
what I consider the most pertinent form of insider risk; ‘malicious
insider’ threats.
A malicious insider is an individual who intentionally seeks to
harm their organisation by stealing data or sabotaging systems, as
opposed to an individual who makes an error or becomes a victim
through naivety. An effective mitigation strategy combines technical
controls, organisational policies, and behavioural monitoring.
Outside of this, it is obviously preferable for businesses to mitigate
against insider threats at source, by conducting thorough background
checks during the hiring process to identify any red flags that may
indicate potential for malicious behaviour. There are now several
online tools, including our own Profile Finder+, which can link
contact information to social media accounts, leaked datasets and
hidden profiles. By vetting employees in this way, and conducting
appropriate and thorough due diligence, your firm can better avoid
the bad actors who pose the biggest threat.
Of course, screening and background checks won’t mitigate against
any unforeseen issues that arise in an employee’s personal and
professional lives. Employee Assistance Programmes and regular staff
surveys can go a long way towards addressing underlying issues with
an individual before they consider resorting to malicious actions.
Josh Bonser,
Analyst Team Lead, NetWatch Global
MODERN INSURANCE | 43