During the trials, the new system was able to detect in-progress APP scams at a rate of 6-in-10 cases, which means that 60% of APP scams could be prevented before they happen by leveraging artificial intelligence, Live Call data and Global Beneficiary Information.
When combined with globally-sourced device intelligence, these data sources can provide a strong indication that a scam is underway. According to research conducted by LexisNexis Risk Solutions, a third of UK financial services organisations expect APP fraud will grow over the next 12 months as the cost-of-living crisis leaves more customers vulnerable to scams.
Live Call data informs banks if their customers are speaking to someone on the phone while in the process of making a mobile banking payment by capturing signals from the user’s device. According to the official press release, one in four APP scams involve a live call, which makes Live Call data crucial for banks’ fraud prevention strategies.
As for Global Beneficiary Information, it helps detect whether a customer is trying to transfer money into a fraudster’s bank account by analysing any suspicious activity associated with that account.
Live Call data and Global Beneficiary information are combined with device intelligence from the LexisNexis Digital Identity Network in order to determine whether a customer might be at a high risk of being scammed. Artificial intelligence uses previous examples of confirmed fraud as a benchmark and combines the aforementioned data sources to detect potentially fraudulent behaviour in live customer transactions.
Officials from LexisNexis emphasised that these trials show how potential scam activity can be predicted with a high rate of confidence and stopped before the money ever leaves the victim’s account. They also expressed how these actionable insights could help banks in the UK in their fraud prevention efforts.
In December 2022, Data and analytics company LexisNexis Risk Solutions has been approached by Hodge Bank to provide them with a full end-to-end solution for customer onboarding and ongoing monitoring, incorporating AML screening, transaction monitoring, and case management.
The RiskNarrative orchestration platform will help Hodge onboard new customers faster and more efficiently, without compromising on risk. The platform will help to ensure the bank protects its customers effectively and supports a great user experience, whilst helping the bank to meet its compliance obligations.
In August 2022, UK-based Darlington Building Society has also shown an interest in implementing the RiskNarrative platform in order to improve its financial crime prevention capabilities as well as its online member portal and customer onboarding experiences.
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