Swiss telcos form fraud risk consortium

This partnership represents a major shift in how telecommunications companies and lenders combat 'subscription fraud' and identity theft. By forming a real-time data consortium with LexisNexis, major Swiss telcos are moving away from reactive security toward a predictive model. For retailers and merchants that offer financing, this technology matters because telco data is often a leading indicator of a consumer's creditworthiness and identity legitimacy. When a fraudster attempts to take out a new device plan or a line of credit, they often jump between different providers. Traditionally, these companies worked in silos, meaning a criminal could hit multiple retailers before being flagged. This new system allows for instantaneous intelligence sharing. If an identity is flagged as suspicious at one point of sale, that data is immediately available to other consortium members. For operators, this means higher approval rates for legitimate customers and significantly lower losses from 'synthetic' identities. While this specific launch is in Switzerland, it sets the global blueprint for how consumer finance providers will use cross-industry data to verify customers at the point of sale without slowing down the checkout experience.

Source: Finextra — Lending

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