Fighting Fraud: The $3.7 trillion black hole facing today's organizations

November 4, 2016
The global cost of fraud per year is approximately $3.7 trillion according to a 2014 survey , meaning that the average fraud impact per organization is estimated at around 5% of its annual revenue. Whilst many believe that fraud cases tend to be multi-million dollar affairs, when in reality the survey revealed that the average loss was actually $145,000 .
The growing number of annual data breaches and hacks of prominent consumer brands such as Talk Talk has generated tension amongst the general public, with users become increasingly aware of the risks created by our ever growing digital footprints. In fact, the Association of Certified Fraud Examiners has started to hold an Annual Fraud Awareness Week which will take place from November 13th to 19th this month.
A wide range of data-driven companies are looking at ways to use their Big Data to help themselves, or others, to reduce the impact of fraud in their organizations using cutting-edge analytical techniques.
At LUCA, our security portfolio has a wide range of B2C and B2B products which look to fight fraud from an end-to-end perspective, working closely with our colleagues at Eleven Paths - our specialist cybersecurity unit in Telefónica.
As we see it, there are many different strategies to detect fraud: compromised points of purchase; payment fraud intelligence; online threat insights etc. However, we also believe that telco data from network events, operations systems and CRM systems can provide groundbreaking insights to organizations looking to reduce the "black fraud hole" they are facing in their P&L. To ensure this can take place, we have implemented a quick and smooth integration between our data insights platform and our fraud management solutions by bringing different teams together merging the worlds of Security & Big Data to bring new value to our corporate customers with products such as Smart Digits. Big Data and security Figure 2: Big Data and Security slide from Chema Alonso's LUCA launch keynote Pedro Pablo Pérez, CEO of Eleven Paths, spoke about these very products at the LUCA launch, highlighting key use cases simulating real situations. We highlighted the benefits for the end consumer, using a clear consent process to mitigate the effects of fraud - fighting the increasingly savvy fraudsters in the online world:
Figure 3: Pedro Pablo talking about Fraud detection using Big Data
Want to know more about how we're bringing Big Data and Security together to fight fraud? Drop us an email here.
By Daniel Torres, Global Product Manager at LUCA.