2015 lexisnexis® fraud mitigation study
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2015 LexisNexis® Fraud Mitigation Study:
Summary of Key Findings
LexisNexis and the Knowledge Burst logo are registered trademarks of Reed Elsevier Properties Inc., used under license. Copyright 2015 LexisNexis. All rights reserved.
1 2015 LexisNexis Fraud Mitigation Study: Summary of Key Findings
Background and Objectives
Fraud is a serious concern for organizations in every industry, with U.S. costs tallying into the billions of dollars or more.
LexisNexis® Risk Solutions conducted its 2015 Fraud Mitigation Study to examine some of the trends around fraud, particularly related to the propensity for criminals to perpetrate fraud across multiple industries.
• Explore the extent to which fraud mitigation professionals encounter fraud cases from other companies and industries, and look at some perceptions and trends around these cases.
• Understand how these professionals are using external data and analytics-based solutions for fraud detection.
2 2015 LexisNexis Fraud Mitigation Study: Summary of Key Findings
The LexisNexis Fraud Mitigation Study was conducted as an online national survey of 400 fraud mitigation professionals from insurance, financial services, retail, health care, government and communications.
The survey has a confidence level of 95 percent.
Third-party research firm Moore & Symons administered the research. LexisNexis was not identified to participants as the sponsor.
3 2015 LexisNexis Fraud Mitigation Study: Summary of Key Findings
Firmographics • Respondents include fraud mitigation
professionals in varying roles within their organizations. Eighty-one percent have at least some direct involvement in fraud cases, and more than half have oversight responsibilities.
• Participants are from organizations of various sizes, with nearly a third (29 percent) from organizations with more than 1,000 employees.
• About 70 percent of respondents come from fraud departments with 20 or fewer employees.
• More than half have an annual budget of $500,000 or less for data and analytics fraud prevention solutions, and nearly 30 percent have a budget of $1 million or more.
Region Where Located Level in Corporation
VP or higher
4 2015 LexisNexis Fraud Mitigation Study: Summary of Key Findings
Key Takeaways Cross-industry fraud is prevalent. (p. 6)
Fraud cases with relevance to multiple industries tend to carry a high financial impact. (p. 7)
Fraud mitigation professionals see value in accessing data about fraud cases from outside of their organization or industry. (p. 8)
They also see value in universal descriptors for fraud that are consistent across industries. (p. 9)
When it comes to current fraud mitigation practices, a majority of those surveyed are accessing both external data and analytics solutions; although fewer than half are using these solutions “very frequently.” (p. 10)
5 2015 LexisNexis Fraud Mitigation Study: Summary of Key Findings
6 2015 LexisNexis Fraud Mitigation Study: Summary of Key Findings
How often are fraud cases connected to other industries?
84%encounter fraud from
In over half of cases
19%In a quarter to half of cases
35%In less than a quarter of cases
Key Takeaway 1
7 2015 LexisNexis Fraud Mitigation Study: Summary of Key Findings
Rate the financial impact that outside cases have on your organization.
55%EXTREME OR HIGHFINANCIAL IMPACT
21%LITTLE TO NO
DON’T KNOWFINANCIAL IMPACT
Key Takeaway 2
8 2015 LexisNexis Fraud Mitigation Study: Summary of Key Findings
How valuable would it be to have on-demand access to data about fraud activities, events, persons or other attributes?
41% 33% Within your industry
Outside your industry
Fraud professionals would use cross-industry data primarily as:
76% Indicators of a potential problem
41% Additional evidence in an investigation
34% Attributes in a predictive model
Method of determining cases
Determinant of benefits
Key Takeaway 3
9 2015 LexisNexis Fraud Mitigation Study: Summary of Key Findings
How valuable would it be if there were common, general ways of describing fraud that are consistent across industries?
56%VERY VALUABLE 31%
Key Takeaway 4
10 2015 LexisNexis Fraud Mitigation Study: Summary of Key Findings
Use of Data Analytics
The survey also explored the extent to which data analytics are used for fraud detection.
To what extent does your team rely on external data and analytics-based solutions for fraud detection?
75%of professionals rely on
them to some extent
Not At All
Key Takeaway 5
11 2015 LexisNexis Fraud Mitigation Study: Summary of Key Findings
3 out of 4
professionals are currently usingexternal data and/or analytics-based
solutions for fraud prevention.
Use of Data AnalyticsDRIVERS
INDUSTRY BEST PRACTICE
22% OTHER* * Other specifies no need, too small, use internal data sources, fraud would be internal
Fraud occurs along the customer continuum and across many industries.By leveraging cross-industry data and analytics-based solutions, fraud mitigation professionals can be better equipped to detect and combat fraud.
For more information about the LexisNexis 2015 Fraud Mitigation Study, visit www.lexisnexis.com/fraudstudy or call 844.AX.FRAUD (844.293.7283)