BOSTON
-- LIMRA, LOMA and the Secure Retirement Institute launched FraudShare, a new
platform that will enable financial services companies to better detect and
prevent account takeover attempts, in conjunction with its 2019 Annual
Conference.
"We
designed FraudShare, in collaboration with 10 leading financial services firms,
as an industry solution to help companies identify fraudulent activity so they
can better understand and prevent account takeover attacks and protect customer
and company assets," said Russell Anderson, head of the LIMRA and LOMA
Fraud Prevention Program.
"According
to new LIMRA-Boston Consulting Group research, 7 in 10 financial services
companies consider fraud a growing concern. Companies report the incidence of
account takeover fraud is increasing for individual life insurance and annuity
contracts and defined contribution retirement plan accounts. Beyond the
tangible damages, such as replenishing customer accounts, and potential fines,
legal fees and lawsuits, companies risk losing something even more valuable:
consumers' trust."
FraudShare
is the latest shared solution developed by LIMRA, LOMA and SRI, in partnership
with the industry, to address common industry concerns. It will enable members
to:
·
Defend against increasingly sophisticated account takeover
schemes;
·
Allocate their resources effectively and efficiently by
leveraging the collective knowledge of the industry as a whole; and
·
Protect their customers, their brands and their balance sheet
from fraud.
"For
more than 100 years, our association has developed cost-efficient, industry-standard
solutions like anti-money laundering (AML) training, our Customer Assurance
Program, best interest training and most recently our FraudShare
solution," noted Anderson. "In each case, we worked with our members
to design the solution to ensure it addressed the critical issues the companies
face. FraudShare will also help business leaders monitor and measure the
occurrence of account takeover at their firm and across the industry."
In the
case of FraudShare, LIMRA, LOMA and SRI established a Founders Council, made up
of representatives from 10 leading financial firms. The members advised the
organization on various development and implementation criteria throughout the
lifecycle.
The
Founders Council included representatives from the following firms: AIG, John Hancock Life Insurance Company, MassMutual, Nationwide, New York Life, Pacific Life Insurance Company, Prudential Financial, Sammons Financial Group, Securian Financial and Symetra Life Insurance Company.
"We
are grateful for the tireless commitment and considerable expertise each of the
Founders Council members provided to us as we developed FraudShare," noted
Anderson. "Their support and knowledge helped us deliver a state-of-the
art tool that will help our industry fight account takeover fraud, protecting
companies and their clients."
FraudShare
is an innovative, easy-to-use tool for cross-industry reporting about the types
and frequency of account takeover fraud occurring in the life insurance and
retirement services industries. The tool is a fraud information clearinghouse
and alert system that allows companies to better protect themselves against
fraud while providing industry-level reporting of account takeover activity.
"Our
members expressed deep concern about the growing occurrence of account takeover
fraud they were witnessing and asked us to build an industrywide solution that
could help them," said Anderson. "We believe our industry is stronger
working together to protect our customers. Establishing FraudShare fulfills
a year-long effort to build a tool that will empower our member companies to
band together to thwart criminal attacks."
InsuranceNewsNet
Senior Editor John Hilton has covered business and other beats in more than 20
years of daily journalism. John may be reached at john.hilton@innfeedback.com.
Follow him on Twitter @INNJohnH.
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