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Trend Pushes Organizations to Share Data for Mutual Gain


Cross-industry Increment of Fraud; Trend Pushes Organizations to Share Data for Mutual Gain
 
LexisNexis risk solutions launched its yearly LexisNexis Fraud Mitigation Study in October, which realized that individuals that carry out the fraudulent act in one industry are increasingly emboldened to exploit other industries, also, offering organizations better incentive to eliminate fraud in a cooperative level through sharing of data. The research also noted that as these organizations add security measures to stop fraud – especially online – they can risk reducing the customer experience.
 
A yearly national online examination of 800 fraud mitigation experts in five industry sectors and government shows that there are essential levels of fraud that affects many industries. Cross-industry fraud is domineering (84% cases), and about 78% of them possess a moderate to high financial effect. Known fraud data is very valuable. Survey respondents see some gains in having known fraud data from fraud data various organizations (both internal and external to their industry) for inquiries.
 
The third-yearly study surveyed over 800 fraud mitigation experts from financial services, insurance, retail, healthcare, communications, and government to gauge trends as well as patterns related to fraud. It noted that cross-industry fraud is widespread, with 84% of experts stating that some fraud cases they investigated were related to other industries. An insurance fraud systematic plan to stage an auto accident, for instance, could as well see the offenders exploit system gaps to claim government benefits in fraudulent ways or get involved in telecommunications, retail as well as payment card fraud.
 
The study noted that cross-industry fraud is as well expensive, with 78 percent of fraud cases having moderate to high effect, and almost half (48%) initiating high financial effect. The estimated yearly combined cost is in the billions of dollars of losses, with fraud mitigation experts stating their greatest concerns stem from identity theft (41%), hacking (36%), and fraud about the employee (33%) and claims fraud (31%).
 
Fraud has become very pervasive expensive over time, and unfortunately, today’s criminals are very sophisticated than before, with fraud schemes that are on the increase which happens to affect many organizations across many industries,  said CEO, Insurance, Bill Madison, LexisNexis Risk Solutions. The great news is that organizations are getting to understand the value of working as one to eliminate fraud through the means of sharing information within and across the business as well as government sectors for them to better address the consumers who demand their services.
 
Interest is on a high among fraud mitigates to use data from other organizations, both within their industries and from other industries as well. 84% of experts stated that more access to industry would be valuable and 80% believe that access to outside-industry data is very valuable.
 
This has caused increased interest in sharing data to have a common cause to fight fraud. 86% of experts stated that they would think of contributing their investigative outcomes to a database that is contributory if they could get the outcomes data back from other industries. Insurance companies, particularly, put a high value on data which come from organizations outside their industry (with financial organizations) due to them experiencing widespread cross-industry fraud.
 
Well believe it has a high financial effect on their organization, the research revealed. Retailers are keen on cross-industry cooperation as well, and due to the increasing threats of spotting fraud in the industry.
 
LexisNexis Risk Solution’s fraud Mitigation Research spotlights prominent fraud trends affecting retailers and as well stresses the need for fraud and information security groups to engage across many industries in a collective endeavor to encourage collective fraud defense capabilities, stated Jennifer Mc Goldrick-Stenberg, Director on Engagement, Retail Cyber intelligence Sharing Center (R-CISC). As the research suggests, a general obstacle that retailers experience is indicating solutions to tackle the rising tide of identity as well as other fraudulent acts that affect customer accounts.
 
In an endeavor to reduce this problem for the industry, the Retailer Cyber Intelligence Sharing Center (R-CISC), which happens to how the retail ISAC, has set up a retail-focused Fraud working body to formulate ideas and solutions as well as strategies to guide against customer account takeover an as well gift card fraud activities. The team functions as a mechanism for driving collaboration across the retail spectrum, with participants coming from member companies involving Cash Star, Jo-Ann Stores, Darden, Hyatt Hotels Corp, QVC, Publix, Ultra and Synchrony Financial, all concentrated on a common goal: to produce results that demonstrably mitigate losses as well as the effect of fraud on customers.
 
As companies incorporate more external data as well as analytics, fraud mitigation experts are utilizing the technology mainly for behavioral analytics and predictive modeling, representing a slight shift from past years where they as well favored automated business regulations to tackle fraud. Over three-quarter of experts said they utilize both external data (79%) and analytics (77%) to tackle fraud now. Madison said this change could reflect the rising sophistication of fraud mitigation methodologies.