Collaborative initiative puts £400 million worth of online claims under spotlight

Hundreds of millions of pounds’ worth of unchallenged malicious refunds targeting some of the biggest names on the High Street will now be subject to renewed forensic analysis thanks to a new online tool that allows retailers to share data and profile serial claimants targeting their businesses.

With more than half of British retail businesses selling online, conservative estimates put the cost of GLIT (Goods Lost in Transit) at £400 million per year, with £40 being the average cost of a claim. That could be the tip of the iceberg, though, as many retailers put the losses down to the cost of doing business and pay out. In addition, they don’t report or investigate certain claims or simply classify them differently in their end of year figures.

Claims Detect Online, which has the capability to monitor and analyse the audit trail of thousands of transactions across multiple retail businesses to spot suspicious claims and anomalies, is the new name for Praesidio from the award-winning National Business Crime Solution (NBCS), the not-for-profit organisation that works with the police and the business community to tackle serious and organised crime.

Widening the net

The online tool widens the net by including a greatly reduced cost (£2,000) to attract smaller retailers and complement the transaction data already provided by the NBCS’ larger brands to highlight the true extent of the problem. The launch comes at a critical time, too, as the latest figures suggest that UK spending online will eclipse £255 billion by 2021.

While contributing retailers (who’ve already identified millions of pounds worth of potentially fraudulent claims through the simple dashboard reporting system) are able to identify persistent refund behaviour, as well as the modus operandi and claim matches from other users, specific confidential data is anonymised in order to comply with General Data Protection Regulation (GDPR) requirements.

New engagement with the platform will also help identify malicious claims and target more effective customer service to legitimate customers.

Enriched data

Simran Baghara

Simran Baghara

Simran Baghara, fraud and legal services manager for Claims Detect Online, said: “As part of its proof of concept in 2017, Praesidio provided enriched data that identified malicious claims went beyond retail and we were able to provide a full report to the Insurance Fraud Bureau. That was achieved with a handful of claims, so imagine what we can achieve by throwing the net wider. We know the offering is strong because it’s the only solution out there that can join together all of the information strands to enable businesses to make intelligence-led decisions. By using three key GDPR compliant indicators, it distinguishes between the fraudulent and the legitimate customer claims so that the latter are helped on their customer journey rather than penalised for fraud.”

Baghara added: “This collaboration means businesses no longer need to write-off fraudulent claims as the cost of doing business. It will also help contributors with information to assist their negotiations with third party delivery companies where an issue is identified at that point of the customer journey.”

*For more information visit www.nationalbusinesscrimesolution.com

About the Author
Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications) Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting. In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector. In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute's George van Schalkwyk Award. An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award. Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site. Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media. Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014 and as Editor of The Paper (Pro-Activ Publications' dedicated business newspaper for security professionals) in September 2015. Brian was appointed Editor of Risk Xtra at Pro-Activ Publications in May 2018.

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