LexisNexis Risk Solutions announced the launch of the LexisNexis® Fraud Defense Network, the first-of-its-kind alliance that seeks to link organizations across all industries with resources, information and actionable intelligence to predict, detect and mitigate the risks that fraud presents. The announcement kicks off the company’s participation in International Fraud Awareness Week, an awareness campaign spearheaded by the Association of Certified Fraud Examiners which estimates global fraud in the trillions.
According to LexisNexis experts, perpetrators engaged in fraud, even after being convicted, are likely to strike again, often in a different industry. By creating an alliance that aids all industries to share information, organizations can better mitigate the risk that fraud presents daily.
“Professional thieves don’t have a particular bias for a given industry,” said John Lorimer, Vice President, analytics and product management, LexisNexis Risk Solutions. “Instead, they tend to ‘follow the money, ’ deliberately exploiting gaps in the system to perpetrate fraud and hide their tracks.”
Fraud management and prevention is traditionally entity- or industry-specific because there has not been a structured effort to share insights and solutions across industries. The Fraud Defense Network provides 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.
For example, LexisNexis internal studies commissioned with customers found suspicious transactions from the telecommunications industry that were also highlighted in non-telecom investigations. In a similar retroactive 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.
It is studies like these that will broaden the conversation about fraud detection and prevention so that organizations can make more informed decisions than they could make by keeping fraud conversations siloed in their own companies or industries. Fraud Defense Network participants will help to create new tools and fraud resources and communicate best practices for organizations to leverage in the fight against fraud.
The Fraud Defense Network (FraudWeek.com) builds on LexisNexis’ core competencies of data, analytics and linking technology, its breadth of fraud prevention solutions, data-driven insights from assets like the annual True Cost of Fraud ℠ Report, and its decades of 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.
About LexisNexis Risk Solutions
LexisNexis Risk Solutions (lexisnexis.com/risk) is a leader in providing essential information that helps customers across all industries and government predict, assess and manage risk. Combining cutting-edge technology, unique data and advanced scoring analytics, Risk Solutions provides products and services that address evolving client needs in the risk sector while upholding the highest standa4rds of security and privacy. LexisNexis Risk Solutions is part of Reed Elsevier, a leading publisher and information provider that serves customers in more than 100 countries with more than 30,000 employees worldwide.