Cross-Industry Fraud Increasing; Trend Drives Organizations to Share Data for Mutual Benefit According to LexisNexis® Fraud Mitigation Study
Increased interest in sharing data to fight fraud
LexisNexis Risk Solutions today released its annual LexisNexis® Fraud Mitigation Study, which found that people who commit fraud in one industry are increasingly emboldened to exploit other industries, too, giving organizations greater incentive to fight fraud cooperatively by sharing fraud data. The same study showed interest is growing among fraud mitigators to utilize fraud data from other organizations, both within their own industries and from other industries. 84 percent of professionals said that more access to industry fraud would be valuable and 80 percent see access to outside-industry data as very valuable.
This has led to increased interest in sharing data in a common cause to fight fraud. 86 percent of professionals said they would consider contributing their investigative outcomes to a contributory database if they could receive the outcomes data back from other industries. Insurance companies, in particular, place a high value on data coming from organizations outside their industry (along with financial organizations) because they experience widespread cross-industry fraud and believe it has a high financial impact on their organization, the study revealed. Retailers are also keen on cross-industry cooperation because of the increasing threats of identify fraud in the industry.
“LexisNexis Risk Solutions’ Fraud Mitigation Study spotlights prominent fraud trends impacting retailers and highlights the need for fraud and information security teams to engage across multiple industries in a concerted effort to strengthen collective fraud defense capabilities,” said Jennifer McGoldrick-Stenberg, Engagement Director, Retail Cyber Intelligence Sharing Center (R-CISC). “As the study suggests, a common obstacle facing retailers is identifying solutions to fight the rising tide of identity and other fraud activities that impact customer accounts. In an effort to mitigate this challenge for the industry, the Retail Cyber Intelligence Sharing Center (R-CISC), which houses the Retail ISAC, has formed a retail-focused Fraud Working Group to formulate solutions and strategies to protect against customer account takeover and gift card fraud activities. The group acts as a mechanism for driving collaboration across the retail spectrum, with participants from member companies including CashStar, Darden, Hyatt Hotels Corp., Jo-Ann Stores, Publix, QVC, Ulta and Synchrony Financial, all focused on a common goal: to produce outcomes that demonstrably mitigate losses and the effect of fraud on customers.”
For the full LexisNexis Risk Solutions release click here: https://risk.lexisnexis.com/about-us/press-room/press-release/2017-10-11-fraud-mitigation-study
To learn more about key findings in the LexisNexis Fraud Mitigation Study, visit http://solutions.lexisnexis.com/fraudstudy.