LexisNexis® Automated Risk Assessment

The integration of digital technology into all areas is fundamentally changing how businesses operate and deliver value to their customers. COVID-19 pressed the fast-forward button on digital transformation. Many organizations experienced a tremendous surge in new customers online as well as an increase in fraud attempts. While customers like the safety and convenience of online transactions, fraudsters appreciate the anonymity of faceless transactions.

Businesses are struggling to keep up with the increased volume and increased fraud attempts. Consider these statistics¹:

• One in four digital transactions is flagged for manual review.
• Each review takes at least 15 minutes.
• Most reviews and subsequent investigations result in false positives.
• False positives cost retailers a staggering $118 billion USD while actual fraud cost only $9 billion per year.

The easy answer for improving online fraud detection and prevention is to add more security measures. But that brings its own issues. Customers have high expectations. They know what a great digital experience looks like, and they expect it from every business they patronize. Anything that slows them down or complicates a transaction weakens their desire to do business with your company.

Many organizations are still mitigating risk the same way they have before the pandemic. They’re using manual, physical identification methods. As alert volumes rise, adding more labor resources to tackle compliance and fraud challenges is not a sustainable strategy. Organizations should consider leveraging data and technology solutions to improve efficiency of their due diligence and investigation processes.

LexisNexis® Automated Risk Assessment is an immediately deployable, codeless solution that automates manual due diligence and investigation processes using pre-configured workflows. It can reduce manual review times and overall compliance spend for:

• Financial services companies
• Bankcard/retail card issuers
• Money service businesses
• Wireless/telecom/utilities
• E-commerce merchants

• Reduce fraud costs – Automated Risk Assessment automation index and process improvement equate to higher fraud hit rates that reduce the rate of fraud cost.
• Improve quality – Automation means fewer transactions fall through the cracks and are treated with consistency.
• Optimize productivity – Automated Risk Assessment can eliminate up to 80% of the time spent on enhanced due diligence activities and manual review processes and improves workflow performance 5x for increased ROI.
• Reduce friction – When you lower the number of false positives via LexisNexis Automated Risk Assessment’s automation index accuracy, more customers have a positive experience, boosting their loyalty and your top line revenue.
• Accelerate time to value – Automated Risk Assessment is pre-configured to automate existing workflows in LexisNexis® Risk Management Solutions® and LexisNexis® AML Insight™ portals. It can be launched quickly and easily to begin improving your operational efficiency immediately.