Stay ahead of the curve with a consortium-fueled risk strategy
In our recent webinar with PaymentsJournal, we discussed the importance of modernizing your fraud mitigation strategy to combat today’s growing fraud trends in banking. Fraudsters are constantly evolving their tactics and moving faster than ever. In fact, a staggering 65% of organizations were victims of payment fraud attacks in 20221. With customers demanding fast interactions, institutions need to adapt to the changing landscape to stop fraudsters and reward trustworthy customers with a seamless experience.
Where does a traditional fraud strategy fall short?
Protecting against fraud losses is complex. Ben Chance from Early Warning® explains, “When using a more traditional binary decision-making system, you might have five different risk factors that you review on an application for potential fraud concern. All five might just barely pass. But if you looked at those five attributes together, you would not book that customer.” Using traditional models often leads to having a high false positive and high false negative rate, meaning you might be letting in the bad while keeping out the good.
This is why it is important for institutions to move to a more sophisticated algorithm that looks at several factors at the same time. Now you tell me, who doesn’t want to speed up growth and prevent bad actors from entering your ecosystem?
What is a consortium model?
The National Shared DatabaseSM resource (NSD) is a consortium-fueled data set used to power Early Warning’s data models. More than 2,500 institutions regularly contribute data on their customers’ account history and banking behaviors into this resource, helping to increase our coverage and strengthen our machine-learning capabilities.
Watch the webinar now to hear Ben Chance, Chief Fraud Risk Management Officer at Early Warning, and Brian Riley, Co-head of Payments at Javelin Strategy & Research, discuss how a consortium data-sharing model can help financial institutions enhance their fraud risk solutions.
You will learn:
- How to identify the three key vectors for fraud
- The top challenges financial institutions are struggling with today
- The foundation of a successful fraud mitigation strategy
- How to build a roadmap to combat today’s fraud trends in banking