WINDSOR, Conn., Oct. 21, 2020—LL Global, the parent company of LIMRA, LOMA, and Secure Retirement Institute® (SRI®), is celebrating the one-year anniversary of FraudShare, a shared industry solution to help financial services companies better detect and prevent account takeover (ATO) attempts.
Over the past year, there has been widespread industry interest in FraudShare. Since its launch, 42 companies have adopted FraudShare as part of their fraud prevention program and many others are in various stages of due diligence and adoption. FraudShare will soon cover companies representing 75% of the in-force U.S. life insurance market, 70% of deferred annuity assets and 30% of the U.S. defined contribution plans market.
“While our research shows ATO attacks have remained relatively steady during the pandemic, companies have been vigilant about protecting their customers’ assets,” noted Russ Anderson, head of LL Global’s Financial Crimes Services. “FraudShare has been a welcome addition to member companies’ fraud prevention programs. Participating companies say FraudShare helped them thwart attacks to their own companies while serving as an early warning system for other companies.”
To date, FraudShare has helped participating companies detect and/or prevent 55 ATO incidents over the past 12 months. FraudShare data suggest that on average, a company reports between 3 to 5 ATO attacks per month and the average fraudulent disbursement requested is $71,000 from an average account value of $251,000.
In addition to helping prevent ATO fraud, FraudShare also provides companies access to industry-specific statistics and trends about ATO fraud in the insurance and retirement industries. This allows companies to benchmark their fraud activity against that of their peers.
LL Global is planning to expand FraudShare to the Canadian market and exploring opportunities to make FraudShare available to help property and casualty insurance companies combat ATO fraud. In addition, LL Global is planning to launch FraudForum, a platform that will allow companies to interact with each other regarding a wide variety of fraud topics beyond account takeover including incidents, training, controls and other best practices.
“A key part of our five-year strategy, Compass 2025, is to work with our members to develop shared solutions that address common industry challenges,” said Anderson. “After one year of running the program in the U.S. and receiving overwhelmingly positive feedback from participants, we believe this solution can be successfully leveraged to help our members in other markets.”
About LL Global
LL Global is the non-profit parent company for LIMRA and LOMA. LL Global provides a unified management and board structure for both trade associations. LIMRA and LOMA have a combined membership of nearly 1,200 insurance and financial services companies in 71 countries worldwide.
Serving the industry since 1916, LIMRA helps to advance the financial services industry by empowering nearly 700 financial services companies in 53 countries with knowledge, insights, connections, and solutions. Visit LIMRA at www.limra.com.
Established in 1924, LOMA helps to advance the financial services industry by empowering more than 900 financial services companies in 57 countries with knowledge, insights, connections, and solutions. Visit LOMA at www.loma.org.