More than 80 Percent of Risk Professionals See Multi-Industry Fraud in Investigations

8/11/2015

ATLANTA  – LexisNexis® Risk Solutions today released the results of its 2015 LexisNexis® Fraud Mitigation Study, indicating that 84 percent of fraud mitigation professionals interviewed see fraud that crosses multiple industries in their investigations. The study revealed that 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.

“Having data analytics programs at the organizational level is very beneficial, but our vision with the Fraud Defense Network is to begin to share data insights across industries to benefit all fraud mitigation professionals and better attack the fraud problem,” Madison said.

The LexisNexis® Fraud Defense Network commissioned the national study to gain insights about how frequently fraud mitigation professionals encounter fraud cases from other companies and industries, and to understand how these professionals are using data analytics solutions for fraud detection. The study included 400 respondents from financial services, insurance, health care, retail and government organizations.

About LexisNexis Risk Solutions
LexisNexis^® Risk Solutions harnesses the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit LexisNexis Risk Solutions and RELX.