Fraud: A critical factor in business planning

In today’s world, every business decision must take into account how it might be impacted by fraud.

“When a company adds or changes a product or service, or makes organizational, process, or control changes, it needs to assess how these changes will affect its fraud exposure,” says Russ Anderson, who leads LIMRA and LOMA’s Fraud Prevention and Compliance Solutions program.

“Fraudsters are constantly seeking opportunities to access or steal company and client data or funds. Therefore, companies must continually assess and update their authentication and fraud prevention controls to stay one step ahead.”

Anderson, who got his start in MassMutual’s Internal Audit where he developed pioneering methods of using computer aided audit techniques, is scheduled to lead a panel of insurance and banking industry experts at the 2025 Life and Annuity Conference, hosted by LIMRA, LOMA, American Council of Life Insurers and the Society of Actuaries, which begins next week in New Orleans.

Insights on creating an anti-fraud program

The panelists plan to share insights on creating and maintaining an anti-fraud program that can adapt and stay ahead of evolving fraud tactics targeting their industries. The discussion will also examine the similarities and differences in anti-fraud programs between the two sectors.

Fraud has a significant impact on both the insurance and banking industries, costing these sectors billions of dollars annually, while also damaging consumer trust, increasing operational costs, and triggering stricter regulations.

Fraud continues to be a major disruptor across financial services, particularly within the banking and insurance sectors. As digitalization accelerates and fraud tactics evolve, these industries face mounting financial, operational, and reputational risks.

Anderson’s planned breakout session, titled “Building Robust Anti-Fraud Programs: Essential Components and Benefits,” will guide attendees through the key elements of a well-designed anti-fraud program.

Anderson says there are four key aspects of a well-designed anti-fraud program. They include:

• Staffing: Ensuring a balanced team with expertise in company operations, product knowledge, an investigative mindset, and proficiency in using complex technology and data analytics.
• Cross-Company Collaboration: Facilitating collaboration among various groups, including Compliance, SIU, Operations, Info Security, Legal, and Fraud Operations, to prevent fraud and respond swiftly to emerging threats.
• Investment: Aligning investment in human resources and fraud prevention technologies with the company’s fraud exposure and experience.
• Leadership: Having decision-makers who champion fraud prevention, promote a fraud-aware environment, and focus on continuous improvement.

Anderson recommends regular fraud risk assessments and, according to a report, found that 72% of surveyed companies said they changed and adjusted their anti-fraud programs as a result of their fraud risk assessment.

Anderson will be joined at the conference by Melissa Glynn, head of fraud operations at MassMutual; Mathew Harper, vice president and global lead product security at Aflac; and Joseph Burke, senior vice president and head of fraud strategy, policy and business intelligence at Citizens Bank.

The session will be one of the opening breakout sessions on the second day of the conference, April 1 at 1:15 pm, in the Churchill B room at the Hilton New Orleans Riverside Hotel.

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