Case study

Designing a target operating model and roadmap for external fraud management

01298_82A1284_BeyondFS_10th-July-2026_Copyright-Richard-Boll_Josie

Associate DirectorJosie Seymour

A global Japanese bank engaged BeyondFS to design a clear operating model for managing external fraud risk as a joined-up capability. Fraud was being handled through a mix of screening rules, operational investigation and supporting controls, with no agreed target state for how these should work together.

BeyondFS was brought in to review the bank's current external fraud capability, define what good should look like for a corporate bank of its size and profile, and set out a practical roadmap to get there.

Industry segment
Global Corporate Bank
Function
Fraud / Financial Crime
Core capabilities
Target operating model design, Fraud risk management, Roadmap and capability uplift

Key outcomes delivered

A clear target state: A documented target operating model for external fraud management, covering controls, governance and supporting teams.
A practical two-year roadmap: The priority steps needed to strengthen the bank's fraud capability, set out in a structured plan.
Blind spots brought into view: Gaps such as the absence of inbound payment monitoring were identified and turned into actions.
A continued partnership: BeyondFS was retained by the bank to help implement the roadmap.

Approach

A full current-state review, shaped by specialist fraud expertise

BeyondFS carried out a full review of the bank's external fraud capability and designed a target operating model covering the wider ecosystem around fraud management.

The review took in the teams responsible for tuning rules, updating controls and investigating alerts, along with the policies, procedures, second line compliance input, fraud risk assessment, governance and risk appetite that surround them. Specialist fraud SME input helped sense-check what an appropriate level of capability looks like for a corporate bank of this type.

Key elements of the approach included:

A target operating model for external fraud management across controls, governance and supporting teams
Specialist fraud SME input to shape a realistic future state for the bank
A review of customer interaction when fraud occurs, including the role of communication and awareness in reducing risks such as invoice fraud
A two-year roadmap setting out the priority improvements, including inbound payment monitoring, closing gaps in outbound coverage and controls to identify customer-perpetrated fraud
A more risk-based approach using customer segmentation, with typology coverage extended to areas such as payments to higher-risk fintechs and payment firms

The result was a design the bank could act on, grounded in how its teams actually work and sequenced into clear steps.

Results

timeline

years

priority improvements

sequenced to lift the bank's fraud capability

operating model scope

(governance, policy, operations, customer communication and future controls)

Outcome

A clear target state, and a plan to get there

The bank now has a clear target state for external fraud management and a practical roadmap for reaching it. Rather than treating fraud screening as a standalone control, it has a broader framework covering governance, policy, operational processes, customer communication and future control development.

The work highlighted important blind spots, including the absence of inbound payment monitoring and a lack of controls aimed at customer-perpetrated fraud, and turned these into a structured plan for capability uplift.

The bank is now better placed to manage external fraud as an evolving risk, and to build a capability aligned to its customer base, risk profile and long-term needs. BeyondFS has been retained to help implement the roadmap in partnership with the bank.