Flagging

The process of marking suspicious transactions, accounts, or activities for further review in fraud detection systems

Flagging is the process of identifying and marking suspicious transactions, accounts, or activities that require additional scrutiny or investigation in fraud detection and risk management systems.

Flag Types

  • Transaction flags
  • Account flags
  • Behavior flags
  • Risk level flags
  • System alerts

Trigger Events

  • Unusual activity
  • Risk thresholds
  • Pattern matches
  • Rule violations
  • Suspicious behavior

Implementation

  • Automated systems
  • Manual review
  • Risk scoring
  • Alert generation
  • Investigation queues

Response Actions

  • Transaction hold
  • Account review
  • Risk assessment
  • Investigation
  • Resolution

Best Practices

  • Clear criteria
  • Quick response
  • Documentation
  • Regular review
  • Performance tracking

Effective flagging systems balance fraud detection with operational efficiency.