Impact and scope of fraud that crosses multiple industries
84 percent of fraud mitigation professionals interviewed by LexisNexis Risk Solutions see fraud that crosses multiple industries in their investigations.
Multi-industry fraud has a moderate to high financial impact on the organizations involved. A strong majority of respondents also indicated that they see value in accessing data and information about cases from other organizations within and outside their industry to aid their fraud mitigation efforts.
It is not a surprise that cross industry fraud was confirmed as a problem, but the fact that data is not yet better shared across industries reveals an exposure for organizations that are combatting millions in fraudulent activities each year by individuals and organized crime rings,” said Bill Madison, CEO, Insurance, LexisNexis Risk Solutions. “Status quo fraud mitigation is not enough for fraud schemes that are becoming increasingly sophisticated. Sharing more data will enable organizations to be armed with more effective tools in the fraud battle.”
Other key findings include:
- More than three quarters of fraud mitigation professionals would use data about potential fraudulent activities from other industries as a pointer to a potential problem related to a case they are investigating.
- 77 percent say fraud mitigation cases connected to another industry have a high or moderate financial impact on their organization.
- 87 percent agreed with the need for a universal and consistent way of describing fraud across industries.
- Nearly half of respondents are using data analytics solutions for fraud mitigation in their organizations, mostly driven by the need for compliance and a desire for accuracy. Budget was found to be the primary deterrent.