Using Financial Strategy Segmentation to analyse the impact of fraud

In order to get more in-depth insight into the behaviour of some of the most financially-stressed groups, we have provided Financial Strategy Segment (FSS) analysis in the Fraud Report 2013.

It delivers person and household-level segmentation based on distinct financial lifestyle types which comprehensively describe the underlying factors that influence consumer behaviour. They include typical financial products, favoured holdings, consumer behaviour and future intentions, as well as summarising each segment’s key socio-economic and demographic characteristics.

As with Mosaic, FSS groups are named to reflect the critical financial aspirations of a cross-section of demographics which includes the younger so-called Bright Futures, Single Endeavour, Young Essentials, and Growing Rewards, through to more mature segments such as Family Interest, Seasoned Economy, Platinum Pensions and Sunset Security.
FSS has helped reflect the unprecedented changes to the UK economy and the impact this has had on the way consumers use financial products and services.

Since the global financial crisis, demand and availability of financial products has changed significantly. Consumers that previously relied on credit to maintain lifestyles have changed their behaviour – not always through choice – while those with significant financial assets have been looking at ways to mitigate risk to protect their financial future.
As a result, the analysis also helps give a different perspective on fraud vulnerability and an indication of who, how and where it is committed.

Significantly, the FSS analysis highlights a handful of key groups that pose a disproportionately higher risk of both committing and falling foul of fraud.

The findings provide some interesting revelations and show that the so-called Single Endeavours FSS segment is the most at-risk group from both first and third-party fraud.
To find out more and get the full picture, simply download the latest edition of our annual Fraud Report here.