Banks Can Boost Fraud Detection by More Than Ten-fold Through Better Collaboration, Research Shows
LexisNexis Risk Solutions reveals that banks and online retailers can significantly improve fraud detection through shared intelligence networks. A US bank improved high-risk event detection by 1700% by combining email risk with digital identity signals, while a top US card issuer enhanced detection by 23x using multiple data points. Currently, only 27% of financial services and retailers in EMEA use fraud insight exchange initiatives. Metro Bank uncovered £2.5 million in fraudulent payments within six months, achieving a 105% improvement using collaborative risk insights.
LexisNexis Risk Solutions rivela che banche e rivenditori online possono migliorare significativamente la rilevazione delle frodi attraverso reti di intelligence condivise. Una banca statunitense ha migliorato la rilevazione di eventi ad alto rischio del 1700% combinando il rischio delle email con segnali d'identità digitale, mentre un importante emittente di carte statunitensi ha aumentato la rilevazione di 23 volte utilizzando più punti dati. Attualmente, solo il 27% dei servizi finanziari e dei rivenditori nell'EMEA utilizza iniziative di scambio di informazioni sulle frodi. Metro Bank ha scoperto £2,5 milioni in pagamenti fraudolenti entro sei mesi, raggiungendo un miglioramento del 105% utilizzando intuizioni di rischio collaborative.
LexisNexis Risk Solutions revela que los bancos y minoristas en línea pueden mejorar significativamente la detección de fraudes a través de redes de inteligencia compartida. Un banco de EE.UU. mejoró la detección de eventos de alto riesgo en un 1700% al combinar el riesgo de correos electrónicos con señales de identidad digital, mientras que un importante emisor de tarjetas en EE.UU. mejoró la detección en 23 veces utilizando múltiples puntos de datos. Actualmente, solo el 27% de los servicios financieros y minoristas en EMEA utiliza iniciativas de intercambio de información sobre fraudes. Metro Bank descubrió £2.5 millones en pagos fraudulentos en seis meses, logrando una mejora del 105% utilizando conocimientos de riesgo colaborativos.
LexisNexis Risk Solutions는 은행과 온라인 소매업체가 공유 정보 네트워크를 통해 사기 탐지를 크게 개선할 수 있다고 밝혔습니다. 미국의 한 은행은 이메일 위험과 디지털 신원 신호를 결합하여 고위험 이벤트 탐지를 1700% 개선했으며, 미국의 유명 카드 발급사는 여러 데이터 포인트를 사용하여 탐지를 23배 향상시켰습니다. 현재 EMEA 지역의 금융 서비스와 소매업체 중 단 27%만이 사기 통찰력 교환 이니셔티브를 사용하고 있습니다. Metro Bank는 6개월 만에 £2.5백만의 사기 결제를 발견하며 협업 위험 통찰력을 사용하여 105% 개선을 달성했습니다.
LexisNexis Risk Solutions révèle que les banques et les détaillants en ligne peuvent améliorer considérablement la détection des fraudes grâce à des réseaux d'intelligence partagée. Une banque américaine a amélioré la détection d'événements à haut risque de 1700% en combinant le risque des e-mails avec des signaux d'identité numérique, tandis qu'un grand émetteur de cartes de crédit aux États-Unis a renforcé la détection par 23 fois en utilisant plusieurs points de données. Actuellement, seuls 27% des services financiers et des détaillants dans la région EMEA utilisent des initiatives d'échange d'informations sur les fraudes. Metro Bank a découvert £2,5 millions de paiements frauduleux en six mois, réalisant une amélioration de 105% grâce à des perspectives de risque collaboratives.
LexisNexis Risk Solutions zeigt, dass Banken und Online-Händler die Betrugserkennung erheblich verbessern können, indem sie intelligente Netzwerke teilen. Eine US-Bank verbesserte die Erkennung von Hochrisikoereignissen um 1700%, indem sie E-Mail-Risiken mit digitalen Identitätssignalen kombinierte, während ein führender US-Kartenherausgeber die Erkennung um das 23-Fache steigerte, indem er mehrere Datenpunkte verwendete. Aktuell nutzen nur 27% der Finanzdienstleister und Einzelhändler in der EMEA-Bereichen Initiativen zum Austausch von Betrugserkenntnissen. Metro Bank entdeckte innerhalb von sechs Monaten £2,5 Millionen an betrügerischen Zahlungen und erzielte dabei eine Verbesserung von 105% durch die Nutzung kollaborativer Risikoeinblicke.
- US bank achieved 1700% improvement in fraud detection through combined data analysis
- Metro Bank uncovered £2.5 million in fraudulent payments within 6 months
- Major UK bank increased fraud detection value by £1.7 million in one month
- Collaborative model identified one in eight flagged accounts as mule accounts
- Only 27% of EMEA financial services and retailers currently use fraud insight exchange initiatives
- Five times greater fraud risk from devices displaying negative behaviors
Insights
The research presents compelling evidence for the transformative potential of collaborative fraud detection in banking. The standout metrics are remarkable:
The financial impact is substantial, as demonstrated by Metro Bank's
For investors in banking and fintech sectors, this signals a clear growth opportunity in fraud prevention technology and data sharing solutions. Companies that facilitate these collaborative networks could see increased demand as financial institutions seek to close this capability gap.
- Just one in four (
27% ) financial service and online retail businesses in EMEA currently employ consortia or fraud insight exchange initiatives - Top US card issuer combined digital identity, email and physical data to boost high-risk transaction detection by a factor of 23
Examples include a US bank that boosted its ability to detect high-risk events by 17 times or
Currently, only around one in four or
A shared collaborative network enables organizations to flag suspicious activity relating to device, IP address, email address and others, to help all members improve their fraud risk assessments. For instance, a device displaying negative behaviors poses a five-times greater risk of subsequent fraud compared to baseline, analysis shows. If anti-fraud solutions flag a device and email address relating to a single identity, the fraud risk is eight times2 greater than baseline. Trusted customers also benefit from these shared networks, since member organizations can flag trusted devices to boost recognition of genuine customers, speeding up login and transaction time.
Such improvements in fraud detection can also result in significant savings for organizations. Metro Bank, a top 10 UK bank, uncovered over
"On their own, email address, digital signals such as device intelligence and verified identity components can reliably detect certain aspects of identity manipulation, but when used together, they become significantly more powerful for assessing application risk that would otherwise be invisible to banks relying on just their own view of customers," said Stephen Topliss, vice president of fraud and identity, LexisNexis Risk Solutions.
"Organizations that share fraud risk intelligence gain a more comprehensive understanding of fraudulent activities, which allows them to predict and pre-empt the next moves of fraudsters," Topliss added. "Sharing intelligence magnifies insights, revealing connections between disparate incidents that might otherwise go unnoticed. Moreover, it streamlines processes by reducing investigation times and allows humans to focus efforts on the most severe threats, thereby elevating fraud prevention success rates. Collaborative networks enable businesses to genuinely understand the complex, networked inter-relationships between every transaction, building this into a digital identity over time."
Another major
Topliss continued, "As fraudsters network with one another and develop increasingly sophisticated strategies, no organization can stand alone in effectively countering their threats. It takes a network to combat networked fraud. Collaborative networks that leverage the power of shared knowledge, risk insights and technology enable organizations to share critical information about fraud trends and patterns in a safe and compliant way. This pooling of resources, combining technological advancements with diverse expertise, creates a robust defence system that far exceeds the capabilities of any single entity or organization."
The Global State of Fraud and Identity Report draws from both the underlying datasets of the LexisNexis® True Cost of Fraud™ Study and the LexisNexis® Risk Solutions Cybercrime Report 2023.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. Headquartered in metro
Media Contact: Mike Normansell | Mike.normansell@lexisnexisrisk.com | 07743899948
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SOURCE LexisNexis Risk Solutions
FAQ
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