Fight fraud collectively for the biggest impact

Large-scale security breaches unfortunately position fraud as a top concern and expense for the financial services industry. Especially alarming for banks is fast-growing synthetic identity fraud. These schemes use a combination of stolen real data and fake information to create new personas, and alone could hit $23 billion in losses by 2030 if unchecked.* A number that size means the industry response must be equally strong, relying on real-time solutions, leveraging AI and pooling industry-wide fraud intelligence.

Crystal Blythe, vice president of customer success and fraud management at IDology, a GBG company, joins us to share her best ideas on technology and people-powered insight. Most of all, she urges cooperation, not competition, when it comes to fighting fraud.

A few takeaways from the conversation:

• Keeping up with fraudsters requires a real-time solution and smart allocation of banking resources. That solution might include velocity alerts, or real-time notifications on high-risk activity such as the suspicious repetition of data across transactions.
• The future of the fraud fight lies solidly with building out a data-sharing consortium, much like a “neighborhood watch” for the industry. This level of cooperation does require competitors to rethink how they share data.
• AI brings flexibility and scalability to fraud detection. But AI lacks transparency and visibility into why some customer assertions are made. That’s where human insight comes in. The real strength in fraud detection comes with linking up velocity alerts, data sharing and a fraud analyst.