Why Every Company Needs a Fraud Risk Operations Group (FROG)

Fraud is not just an IT problem or a compliance checkbox. It is an operational risk that cuts across the entire business. Too often, companies respond to fraud in silos: customer support fights chargebacks, compliance drafts policies, product teams patch workflows, and finance tracks the losses. Each team is doing its part, but the approach is fragmented.

That is where a Fraud Risk Operations Group, or FROG, comes in. A FROG provides structure and accountability, turning reactive fraud firefighting into a coordinated defense. If your company does not have one yet, the best time to start is before you need it.

What a FROG Really Does

A Fraud Risk Operations Group is not a replacement for security or compliance. Instead, it is the connective tissue between them. A well-functioning FROG spots fraud patterns early, integrates signals from across departments, and develops clear playbooks so the business does not lurch from one fraud incident to the next.

The goal is not only to reduce losses but also to protect customer trust. Customers do not care which internal team “owns” fraud prevention. They only care that their accounts are safe and that legitimate activity is never blocked unnecessarily. A FROG ensures both.

Signs It’s Time For a FROG

Most organizations realize they need a FROG only after the warning signs pile up. Fraud losses begin to climb. Ownership of fraud becomes a tug-of-war across teams. Customers start complaining about compromised accounts or broken transactions. Regulators or business partners ask for more documentation.

If even a few of these sound familiar, your organization is ready for a more coordinated approach. A FROG does not need to be large to be effective. It simply needs to exist, with a clear mandate and authority to act.

How You Can Build the Right Structure

The structure of a FROG will look different at every company, but the fundamentals are consistent. The group should have executive sponsorship to ensure fraud prevention is a priority across the business. The core team typically includes operations leaders, compliance or risk experts, product managers, and customer support. Each brings a unique view into how fraud shows up in daily workflows.

Allies in information security, finance, and legal should be looped in regularly. Their perspectives help shape stronger playbooks and faster responses. At first, a FROG might meet monthly. As the function matures, weekly meetings with a consistent agenda - such as reviewing incidents, monitoring key signals, and updating playbooks - help keep the program sharp.

Tools That Set a FROG Up for Success

Even the best team needs the right infrastructure. Identity verification and fraud detection technologies anchor the work, giving the group reliable signals instead of guesswork. Products like Proof’s Verify, Identify, and Defend are designed for exactly this purpose, weaving customer truth into every transaction.

Fraud playbooks are another essential element. A library of responses to common attacks (synthetic identities, account takeovers, or insider fraud) keeps the group from reinventing the wheel. Finally, clear metrics provide a shared language for understanding progress. For example, tracking fraud prevented, false positives reduced, and customer churn avoided tells a powerful story that is meaningful to both leadership and frontline teams.

Take the FROG Leap

Standing up a FROG does not have to be a six-month project. In fact, momentum comes from starting small. You can appoint an interim lead, map where fraud-related work currently lives, and convene the first meeting. Even a simple review of recent fraud cases will reveal quick wins. Cutting down repeat account lockouts with biometric checks, for example, can both improve customer experience and reduce fraud exposure.

Sharing early results widely is the key to building credibility. Once teams see the impact of a coordinated approach, participation will follow.

Organizations that invest in a FROG do more than reduce fraud losses. They reduce noise. Customers stop tripping over false positives. Teams stop duplicating effort. Leaders gain visibility into risks before regulators or headlines demand answers.

Fraud is persistent. Your defenses should be too. A Fraud Risk Operations Group provides the structure to fight back while protecting the customer experience that drives your business forward. To learn how Proof helps leading companies prevent fraud and verify identity with confidence, check out our solutions for identity authorization.