Times of crisis and uncertainty create desperation, so it’s no surprise that fraud has run rampant with the introduction of the CARES Act. The $2.2 trillion economic stimulus bill was created to provide financial support for businesses and individuals and preserve jobs and small businesses during the sudden economic fallout.However, fraudsters who are eager to collect more than their fair share are creating unique challenges that must be addressed. Every dollar obtained through fraud is a dollar not going to an individual who could rightfully use the financial assistance.A recent webinar co-hosted by DataVisor and PwC explored some of the challenges created by the CARES Act and what financial institutions can do to slow the spread of CARES Act fraud. Here’s a look at some of the highlights:Challenge: Eliminating Friction for Good Customers without Incurring Fraud RiskThe core purpose of the CARES Act was to put much-needed funds into the right hands to prevent economic collapse. Because time was an essential factor, the barriers to entry were relatively low and made for very little friction for customers. For valid applications, a friction-free process is a welcomed experience, but it also puts financial institutions (FIs) at risk for fraud.Conversely, implementing too many “failsafe” measures can add friction to the process and potentially result in a higher false-positive rate. Ideally, FIs should look at all data points in real time to detect patterns and subtle correlations that can allow valid customers to pass while preventing fraud from moving forward.

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