Experian’s Innovative Network Tackles Fraud Risk in FinTech
Experian recently introduced a FinTech-centric variant of its prevention of fraud network in the United States. This new version of the Hunter network is being implemented in response to an increase in fraud in the FinTech industry, as announced on May 10th. The company stated in a press release that the network provides users with “a bird’s-eye view of sight” into client activity across the FinTech industry to detect potential fraud risks. Participants may disclose illicit activity in real-time by contributing data linked across the network.
Experian claims its customers’ fraud detection has improved by 35% on average when employing the Hunter network. The company stated that FinTechs can detect fraud, reduce false-positive referrals, and enhance customer experience. Research published in the PYMNTS/Clearing House report discovered that the number of attempted fraudulent transactions increased by 92% between 2021 and 2022, while the dollar amount of attempted fraud increased by 142%.
The Federal Trade Commission reports that the quantity of money lost to fraud in 2018 was $8.8 billion, an increase of 30% from 2021. This figure only included consumers. Businesses face their own unique types and levels of fraud. The PYMNTS report “The State of Fraud and Financial Crime in the U.S.,” in partnership with Featurespace, discovered that the overall financial cost of fraud is expected to increase over the next few years, aligning with a spike in scams and other fraudulent offenses.
Michael Jabbara, global director at Visa in the sector of fraud services, stated in an interview, “It’s a continuous spectrum.” “Businesses must consider all interactions across various dimensions and strategically implement appropriate security measures to reduce the likelihood of fraud occurring.”
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