Case | HBS Case Collection | September 2001 (Revised July 2002)

Fraud Prevention at Omni Bank

by Frances X. Frei and Hanna Rodriguez-Farrar


Omni Bank is undergoing a merger and has two important decisions ahead. First, should it enforce the use of its model-driven approach to interacting with customers at the recently acquired Friends Savings and Loan branches. Friends has a culture of personal touch with its customers and there will likely be resistance to impersonal changes. However, the impersonal models are much better at detecting fraud, which is increasing in the banking industry. The second decision is whether to use biometrics to help prevent fraud. Biometrics, such as eye and finger scans, can virtually wipe out certain types of fraud, but its implementation has serious consequences in terms of managing customer relationships.

Keywords: Mergers and Acquisitions; Business Model; Crime and Corruption; Customer Relationship Management; Decisions; Banks and Banking; Banking Industry;


Frei, Frances X., and Hanna Rodriguez-Farrar. "Fraud Prevention at Omni Bank." Harvard Business School Case 602-068, September 2001. (Revised July 2002.)