You are here: Home | News | leading initiative designed to bring credit industry together to tackle fraud losses
leading initiative designed to bring credit industry together to tackle fraud losses
the continued growth in credit application and identity fraud reinforces the urgent need for the lending industry to step up its defences against this crime by sharing data on previous applications and frauds.
Neil Lewis, Head of Fraud & ID Products at Equifax comments: “Statistics show that application fraud continues to grow, and that the defence systems currently available are failing to support the consumer credit industry in its challenge to strike the balance between granting credit and preventing frau
Industry statistics bear out Lewis's comments. According to KPMG, financial firms lost 10 times more to fraud in 2005 than in 2004. Furthermore, CIFAS, the UK's Fraud Prevention Service, reported that identity fraud attempts have risen 17% in Q1 2006 compared to Q1 2005 and application fraud losses rose by 13% in 2005 compared to 2004.
Equifax is taking the lead in addressing this continuing threat to the consumer credit industry by creating an industry-wide database of previous application frauds and developing an online fraud prevention solution that will be accessible as an integral part of the credit application process.
”We all recognise that data share is vital in the fight against fraud, but we must ensure that we are capable of maximising the benefits that data share can deliver.'' advises Lewis. “Equifax's new solution will deliver such a capability by providing realtime access to a single database that contains both historical frauds and applications. And because fraudsters are known to target their activity right across the industry, Equifax's aim is to ensure that the information sharing encompasses every sector affected by application fraud. This includes banks, retail credit providers, credit card issuers, mobile telecommunications, mail order and internet shopping”.
Furthermore, as the new solution will incorporate Sira Financial from Synectics Solutions Ltd*, it will enable organisations to manage their own bespoke fraud rules, and prioritise and manage their own operational workflows.
Lewis concludes: “Through this data share intitiative and online solution, the industry will have the realtime ability to strike the right balance between preventing fraud and acquiring new customers. Any business serious about its fraud prevention capabilities should want to be involved in sharing its data. Having online access to an industry wide fraud and application universe, coupled with intelligent total fraud management, as part of the credit application process is, we believe, a must have solution if application fraud is to be tackled effectively
Tagged as: fraud
Should your colleagues be reading the Retail Bulletin? Let them know about us.