A payments platform grappling with fraud losses grew frustrated when its risk scoring system failed to differentiate effectively, leaving every transaction in the same neutral-risk category. Even high-risk transactions slipped through undetected.
The organization then turned to a collaborative intelligence network that was focused on flagging suspicious email accounts. This shift led to a 327% increase in fraud detection.
This is just one of the success stories featured in a report from LexisNexis Risk Solutions, Global State of Fraud and Identity. Another example highlights how a U.S. bank improved its high-risk event detection by 1,700% by combining email risk assessments with digital identity signals. Similarly, a U.S. card issuer was able to raise its fraud detection rates 23-fold by employing multiple data points from a range of sources.
The bottom line is that organizations can significantly improve fraud detection by using shared intelligence networks. These collaborative networks enable members to flag suspicious activities related to devices, IP addresses, email addresses, and more—overall enabling all participants to improve their fraud risk assessments.
LexisNexis’ analysis found that a device displaying negative behaviors poses a fraud risk five times greater than the baseline. When an anti-fraud solution flags both a device and an email address tied to a single identity, the fraud risk jumps to eight times higher. This approach not only helps organizations recognize fraudulent activities but also improves their ability to recognize genuine customers, streamlining login and transaction processes for a smoother user experience.
Sharing Initiatives
Surprisingly, only 27% of financial services and retailers in the EMEA region are using fraud insight exchange initiatives. However, several associations have been working to raise awareness of the importance of collaboration on this front.
The UK’s Payments Association highlighted Australia’s approach as a model in a recent white paper. In September, Australia’s government introduced the Scam Prevention Framework, which fosters collaboration among financial institutions, telecom companies, and digital platforms to share information on scam trends and emerging threats.
Similar initiatives are underway in the U.S. Nacha, which oversees ACH payments, is set to implement new rules in mid-2026 aimed at enhancing cooperation in fraud detection. The regulation will require institutions to adopt procedures for handling suspicious ACH credits, encouraging a collaborative approach. Both sending and receiving financial institutions will work together to combat unauthorized transactions, strengthening the fight against ACH fraud.
“By using consortia data and combining various data signals, financial institutions can reduce false positives—which often take necessary resources away from actual fraud incidents,” said Jennifer Pitt, Senior Analyst in Fraud and Security at Javelin Strategy & Research. “Banks who still rely on viewing customers from a small lens of a single transaction or single account are missing out on preventing fraud and detecting fraud in near-real time—a problem that could be remedied by using consortia data and broader identity signals. Showing consumers the benefits of using various data points to combat fraud will also build trust and more of a buy-in for consumers who might otherwise be hesitant to share information.”
