WHAT DOES A FRAUD MANAGER DO?

Published: Apr 04, 2025 – The Fraud Manager develops and enforces comprehensive fraud risk management policies, procedures, and best practices to strengthen organizational resilience against financial crime. This position leads fraud investigations, collaborates with internal departments and external agencies, and recommends control improvements to prevent future incidents. The manager also delivers expert advisory services, regulatory compliance guidance, and tailored fraud awareness training to enhance detection and prevention capabilities.

A Review of Professional Skills and Functions for Fraud Manager

1. Fraud Manager Roles and Responsibilities

  • Fraud Detection: Work internally with multiple stakeholders to identify fraud, mitigate exposure, and enhance recovery
  • Requirements Gathering: Collaborate closely with and provide Data and Engineering with business requirements that would improve risk tools and detection of emerging fraud trends
  • Fraud Strategy: Develop and implement fraud/risk rules and strategies to improve fraud detection accuracy with maximum automation
  • Data Analysis: Analyze large data sets and perform ad-hoc analysis
  • Fraud Trends: Identify fraud trends, take action to stop fraud activity, enhance fraud rules, and improve automation
  • Model Evaluation: Work with the data team to develop models, evaluate, and improve performance by identifying data gaps or new variables
  • Rule Validation: Validate the fraud rule performance to ensure optimal results
  • KPI Metrics: Identify and build fraud metrics for KPIs, reports, and dashboards to monitor and benchmark performance
  • Process Improvement: Develop and continuously improve processes to identify, communicate, and escalate fraud activity to internal and external stakeholders
  • Vendor Management: Identify, onboard, and manage relationships with a host of fraud and risk management vendors to enhance fraud detection and mitigation techniques
  • Reporting: Produce regular financial crime management information for all governance for up to the Board
  • Policy Development: Develop, implement, and update adequate financial crime risk policies, standards, and processes

2. Fraud Manager Duties and Roles

  • Fraud Management: Manage day-to-day fraud prevention and mitigation
  • Pattern Analysis: Perform rigorous analysis on the pattern of payment history and generate the most predictive characteristics for modelling and fraud detection
  • Market Research: Study business operations and the local market to make determinations about its ongoing competitive outlook on fraud behavior
  • Fraud Diagnosis: Diagnose possible frauds and their root causes by utilizing data skills and continuously investigate and upgrade anti-fraud practices
  • Data Visualization: Build effective visualization to communicate complex fraud concepts and findings from models and tests
  • Risk Monitoring: Establish risk and fraud monitoring reports with effective risk predictors for early alert and early-action plans
  • Tool Development: Develop and monitor tools, processes, and strategies to ensure that they deliver high-quality fraud detection while balancing acceptance rates and Profit and Loss impacts
  • Model Building: Build fraud analysis models and provide data-driven insight on improving the efficiency and effectiveness of the fraud systems
  • System Improvement: Work with the product, customer service, marketing, and development teams to identify system improvements to the fraud prevention systems
  • Reporting: Implement and deliver reports and best practices
  • Process Development: Create a scalable fraud process for a growing business

3. Fraud Manager Responsibilities and Key Tasks

  • Policy Development: Develop and maintain Fraud Risk Management Policy, standards, related procedures, methodologies, and guidelines
  • Risk Management: Focus on establishing sound and effective fraud risk management practices at Fidelity
  • Fraud Investigation: Investigate potential and confirmed cases of fraud, seek recovery of any losses, and advise relevant business units of control enhancements to prevent reoccurrences
  • Stakeholder Engagement: Build effective relationships with internal/external stakeholders (e.g., law enforcement agencies and other Financial Institutions to collaborate in investigations)
  • Cross-functional Collaboration: Work effectively in partnership with other oversight and investigative functions, such as Corporate Security, IT Risk, Legal, and Internal Audit
  • Reporting: Prepare reports for senior management in respect of investigative findings
  • Advisory Services: Provide subject matter expertise and advisory services to proactively ensure strong internal controls are in place to mitigate against fraud
  • Solution Implementation: Recommend and implement solutions based on the analysis of issues
  • Industry Participation: Participate in industry working groups concerning fraud prevention and investigative best practices
  • Fraud Training: Develop and maintain general fraud awareness training for the organization and provide targeted face-to-face training for front-line employees
  • Compliance Advisory: Provide the business with a proactive, expert, and effective regulatory compliance advisory service on financial crime

4. Fraud Manager General Responsibilities

  • Cross-functional Liaison: Liaise with other parts of the business, such as Compliance, Customer Care, and Operations
  • Stakeholder Engagement: Engage with senior stakeholders to ensure the Fraud Investigations team supports company decisions and processes
  • Task Monitoring: When on shift, ensure that all tasks are being completed within expected parameters, including the individual team and the Fraud Investigations team as a whole
  • Team Management: Responsible for the people management of the team, including absences, holidays, and general individual KPIs
  • Performance Monitoring: Monitor individual performance to ensure they are adhering to WorldRemit values
  • Team Ownership: Encourage the team to take ownership of their tasks to ensure they and the team are performing as expected
  • Performance Reviews: Manage regular performance reviews to ensure individual, team, and company targets are achieved
  • Process Improvement: Actively suggest opportunities to improve processes to become more efficient and improve the customer experience
  • KPI Tracking: Track and manage KPIs, circulating regular updates to the management team
  • Fraud Operations Support: Identify gaps and opportunities while supporting the Fraud Operations team
  • Project Delivery: Deliver projects, streams of work, and continuous improvements with a wide range of teams, such as technology, product, finance, compliance, customer service, payments, and more
  • Fraud Communication: Be the main point of contact for fraud-related issues across internal functional interfaces (i.e., finance, product, legal) and external partners (i.e., fraud providers)

5. Fraud Manager Essential Functions

  • Fraud Operations Management: Manage overall fraud operations, including fraud manual review, customer support, and quality analysis
  • Operational Metrics: Continuously improve operational metrics and ensure SLA’s and KPI’s are being met, working with Business Intelligence on a data-driven framework
  • Team Development: Develop human capital within the team, providing direction and support to establish a consistent approach for both on-shore and off-shore resources
  • Quality Improvement: Improve team quality and productivity through industry benchmarks and best practices while managing an operations budget
  • Strategy Collaboration: Collaborate with decision analytics product management on the overall business strategy to innovate and grow Radial’s fraud decision analytics solutions
  • Client Optimization: Help clients optimize all elements of their finance organization
  • Financial Guidance: Guide clients in effective overall financial management as well as corporate performance management
  • Process Improvement: Improve companies' transactional and decision support processes, enhance underlying technologies, and refine organizational designs required to make each process more effective and operate efficiently
  • Coaching: Develop direct reports through coaching, providing performance feedback, and delivering effective performance assessments
  • Internal Collaboration: Collaborate and calibrate with internal partners and leadership to ensure consistent, focused delivery
  • Fraud Expertise: Maintain expert-level knowledge of fraud methods and solutions to provide guidance and handle escalated issues
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