Large enterprises constantly extol the benefits of breaking down silos and sharing data across business units for strategic purposes. But as we all know, there’s a big difference between theory and practice. The challenges in implementing this vision range from differences in business units’ software systems and data formats, to busy executives focusing on competing priorities, to the fear that centralized processes might limit departmental flexibility. But many companies are now finding a more urgent reason to finally address segregation of data: fraud prevention.
Criminal efforts to capture and steal personal information to take over financial accounts, open new fraudulent accounts and engage in credit card fraud continue to accelerate. According to Javelin Strategy & Research, identity fraud resulted in $24 billion in combined U.S. consumer and financial institution losses in 2021, a 79% increase from 2020. Unfortunately, cross organizational fraud is escalating the steep financial cost of these efforts.