Consortium Data Sharing for Fraud Prevention

This report is a technical report that examines the role of consortium data sharing in combating fraud and enhancing customer experiences within financial institutions. It begins with an overview of the consortium data-sharing market landscape and outlines how banks can leverage shared data to improve their fraud management capabilities. The report discusses the importance of understanding both current and historical performance data for effective fraud prevention and highlights the various forms of shared databases, including those provided by credit reporting agencies and vendor-specific consortia. It also presents case studies demonstrating the practical applications of consortium data in fraud detection and prevention. Key findings include the rise of consumer-permissioned data sharing and the necessity for financial institutions to address privacy, security, and regulatory considerations when utilizing shared data. The report concludes with insights into the governance structures that should be in place to manage the use of shared data effectively.