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In fact, that's likely not your credit union's fraud department. It's probably the fraud department of the provider of your debit card, which is a different com
by philipov 7y ago
In fact, that's likely not your credit union's fraud department. It's probably the fraud department of the provider of your debit card, which is a different company.
- hinkley 7y agoI'd be very surprised if you're wrong about that. I think maybe the smartest thing I've ever heard Michael Dell say was related to pulling the plug on a plan to outsource a tech support unit. They realized the perverse incentive: if you get paid by the call or incident, and some calls are cheaper than others, you "benefit" if there are more easy calls. Even though it's better for the company if you recommend fixing the root cause of those calls (eg, changing the packaging, documentation, or design of the product so that people don't have to pick up the phone). Outsourced Fraud seems like it would have some of the same moral hazards.
- tal8d 7y agoHaving worked in loss prevention for more than one company, I've only seen cuts to that budget occur in one of two ways: departments working themselves out of a job by solving the root cause, or vendors absorbing enough counter-party risk to make in-house anti-fraud programs a net negative. I can't imagine any decision-maker outsourcing LP without simultaneously outsourcing risk, because it would not only be a bad idea - but would be nearly pointless in even the best potential outcome.