Top Tips for Building your Risk and Fraud Team

Top Tips for Building your Risk and Fraud Team

Last week, we shared our experiences in hiring, training and developing a world-class risk team with merchants worldwide via two informational webinars in partnership with the MRC.

If you missed out, we’ve included a snapshot summary below for how to find the right people to build your risk team. For the full picture on hiring, training and developing world class fraud analysts, you can watch the full webinar recording here.

Top Tips for Hiring the Right People

A strong-performing team is all about the the people who make it up. Our belief is that you can get far more impact from hiring the right person with the right skills, rather than hiring the person with experience. Here are some things to keep in mind when looking to start or grow your own risk team:


1. Fraud can be taught

At Riskified, we hire people from diverse backgrounds, often with little or no fraud experience. Our philosophy is to recruit top talent and then provide them with all the training and skills they need through our comprehensive fraud training process. Look for candidates with a natural sense of curiosity and a strong desire to learn new skills, as these are two common characteristics of successful analysts.

How to Evaluate: To assess innate curiosity, we ask candidates to describe a subject they recently became interested in and wanted to learn more about. Whether the candidate tells a story about how they became fascinated with World War One or French Cooking, listening to the specific steps they took to to quench their curiosity is a strong indicator for their ability to take on the task of researching orders.


2. Distilling data to its core

At the core, a successful fraud analyst is a serial problem solver, using data to make decisions. Evaluating their ability to extract relevant information from a given data set and quickly identify patterns and trends is paramount.

How to Evaluate: We provide profiles of five different customers and five different shopping lists with various items. Within 10 minutes, their task is to match the shopping list to a specific person. Given the time restraint and ambiguous information, we’re looking for candidates to use the technique of anchoring by using single points of reference that can’t be changed, e.g. one billing statement contains cat food and only one personality profile mentions a cat, so they should be matched.


3. Communication is key

Since analysts have multiple touchpoints across the organization as well as between each other, it’s crucial to ensure they are strong communicators who can both support their decision rationale and drive the process forward. They also need to be able to communicate complex ideas clearly.

How to evaluate: We ask candidates to build a five minute presentation about a complex subject they know very well, for example, a biology major might give a presentation on how the brain operates, or a classical pianist might explain the structure of a Mozart sonata. Listening to how applicants break down a complex subject into simple, digestible pieces gives a strong indicator for their ability to share complicated insights on specific orders with the wider team.


4. Standardize evaluation process across candidates

In order to ensure the same sought after skills and capabilities are being consistently assessed across all potential candidates, it’s important to adopt a standardized evaluation process.

How to evaluate: We find it useful to meet candidates on different days to ensure consistency and involve several members of our team for a balanced perspective. Each candidate answers the same questions and completes the same tests during each stage of the three-interview hiring process.


5. Seek leaders who will actively improve existing processes

In order to stay ahead of the curve and continually improve the risk-process, active and engaged analysts are required, who are not afraid to share their ideas about how to improve key metrics such as speed and accuracy of order reviews.

How to evaluate: We ask candidates to tell us something that was wrong with a former employer’s organizational structure. Ideal candidates won’t use this as an opportunity to gripe, but instead will tell us about a challenge and how they addressed it.

Interested in learning more? Watch the full webinar recording here or reach out to us