I do understand this and I’m sure the fraudsters do too. ‘Domestic Sharing’, this is what I’m questioning more and more. Fraud intelligence sharing is rarely done at a regional or global level unless it’s a global organisation, but then it’s internal sharing for the good of the individual bank or financial institution. Of course we should not forget that some countries have restrictions in place and simply cannot share.
Several months ago I spent time working closely with an Australian Bank analysing their card fraud data with a view to providing an optimal rule strategy. The exercise was highly successful and another bank requested the same professional service a couple of months later, this time in South Africa. As I began to analyse this bank’s fraud data I had a déjá vu moment. Specific fraudulent authorisations were jumping off the screen, the same high risk merchants, the same high risk countries, MCC’s (merchant codes)….. I had seen this before. Scanning through my analysis results and recommendations for the Australian bank, I could see the fraudsters were migrating and starting to hit South Africa. Now if the Australian bank had a mechanism in place to share its high risk / bogus merchant attacks at a global level, how many banks would have benefited and proactively put measures in place? Undoubtedly the South African bank would have benefited and saved thousands of dollars in fraud losses.
As a payments company with hundreds of fraud management solutions deployed globally, we are always striving to see how we can be innovative and help our customers. I wonder how many ACI customers using Proactive Risk Manager are willing or prepared to share some of their fraud intelligence for the greater good of the industry? (And to that question, I’d love to hear from you directly). So back to my first question, is global bank collaboration a key factor for driving down payments fraud losses and broader financial crime losses? I personally think it’s a no brainer.
Is Global Bank Collaboration a Key Factor for Driving Down Fraud Losses? by Jay Floyd
Payments hub 
