Behavioural Fraud Reduction Messaging Cut Fraud by 12 %

Our client needed to reduce fraudulent or dishonest disclosure provided by customers who called to give information. Customers had a financial incentive to misrepresent details, leading to increased costs and inefficiencies.

Insight: Typical messaging for improving disclosure backfires. Behavioural techniques succeed

How fraud prevention messaging is framed dramatically influences behaviour, often in counterintuitive ways. For example, standard messages tend to communicate that customers are being observed or recorded. This can increase fraud by triggering defensiveness and an “us vs them” mindset.

The Solution: A behaviourally designed opening message

We redesigned the first message customers hear, ensuring it:

• Encouraged reciprocity by framing honesty as mutual
• Fostered a cooperative, community-driven mindset instead of an adversarial one
• Positioned honesty as expected and valued, rather than enforced

The Results

• Measured fraud dropped by 12%, improving data accuracy
• Customers reported higher trust in the process, improving long-term engagement
• Achieved fraud reduction without adding friction or making interactions feel confrontational

Big Takeaway

Fraud prevention is not just about deterrence. It is about creating the right environment. When customers feel part of a fair, cooperative system, they are significantly more likely to act honestly without added enforcement.