LexisNexis Risk Solutions has announced the launch of a new cross-industry network to fight fraud. The LexisNexis Fraud Defense Network is an alliance aimed at connecting organizations across industries with resources, information and actionable intelligence to predict, detect and mitigate the risks that fraud presents.
Global fraud is estimated to cost industry nearly $3.7 trillion, according to the Association of Certified Fraud Examiners. In a recent study conducted by the association, the typical organization loses 5 percent of revenues each year to fraud and the median duration — the amount of time from when the fraud commenced until it was detected — for the fraud cases was 18 months. LexisNexis says that by creating an alliance that aids all industries to share information, organizations can better mitigate the risks that fraud presents daily.
“Professional thieves don’t have a particular bias for a given industry,” John Lorimer, VP of analytics and product management, LexisNexis Risk Solutions, said in a prepared statement. “Instead, they tend to follow the money,’ deliberately exploiting gaps in the system to perpetrate fraud and hide their tracks.”
Traditionally, fraud management and prevention has been entity- or industry-specific because there has not been a structured effort to share insights and solutions across industries, according to LexisNexis. The new network is providing companies and organizations from finance, retail, telecommunications, insurance, government, law enforcement and health care with a dedicated platform to share best practices and contribute to the body of knowledge of fraud, LexisNexis says.
LexisNexis’ internal studies with customers illustrate the patterns of fraud across industries. As an example, suspicious transactions from the telecommunications industry were also highlighted in non-telecom investigations, and in another analysis, LexisNexis uncovered that cross industry data would have drawn attention to medical providers who were recently convicted of committing fraud, which resulted in millions of dollars of loss.
LexisNexis says studies such as these will help to broaden the conversation about fraud detection and prevention so organizations can make more informed decisions. In addition to generating industry-wide information sharing, Fraud Defense Network participants will help to create new tools and fraud resources in the fight against fraud, the company says.
According to LexisNexis, the Fraud Defense Network builds on its core competencies of data, analytics and linking technology, its fraud prevention solutions, data-driven insights from assets like the annual True Cost of Fraud Report, and its experience creating and maintaining industry-wide contributory databases like C.L.U.E. for P&C insurance, the Special Investigation Resource and Intelligence System (SIRIS) for the National Health Care Anti-Fraud Association (NHCAA), and MIDEX for the mortgage industry. The announcement kicks off the company’s participation in International Fraud Awareness Week Nov. 16-22, an awareness campaign spearheaded by the Association of Certified Fraud Examiners.
To participate in the Fraud Defense Network, visit http://www.lexisnexis.com/risk/fraud-defense-network/. For more information about increasing awareness and reducing the risk of fraud during International Fraud Awareness Week, visit FraudWeek.com.
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