Prove and LexisNexis Team to Help Businesses Combat ID Fraud

Prove Identity has teamed with LexisNexis Risk Solutions to help businesses battle fraud.

The partnership gives companies access to Prove’s “phone-centric” identity and authentication solutions and LexisNexis Risk Solutions’ suite of fraud intelligence tools, according to a Tuesday (July 25) press release.

Together, the offerings will help businesses deal with authorized push payment (APP), impersonation and money mule fraud, per the release.

“The aim of this partnership is to equip companies with the capabilities that will drive customers toward a continuous path of safeguarded secure online experiences,” said LexisNexis Risk Solutions Managing Director of the U.K. and Ireland Steve Elliot in the release. “The mobile channel is increasingly dominant as the main route for access to online services, and this partnership will help further enhance fraud prevention technologies for clients to ensure their customers enjoy a safe and secure browsing experience with minimal threat from fraud.”

The partnership is happening as businesses in the U.K. are under increasing pressure to prevent APP fraud, which involves scammers tricking a person or business into sending money to a fraudster’s account.

Last month, the country’s Payment Systems Regulator (PSR) announced new requirements for banks and payment companies designed to prevent APP fraud, which costs consumers in the U.K. close to 500 million pounds (about $643 million) per year.

“Once implemented, our changes will deliver a major shift from the status quo, giving everyone across the payments ecosystem a reason to act to prevent fraud from happening in the first place,” said PSR Managing Director Chris Hemsley said in June.

The new rules are designed to incentivize payment firms to take action, as both sending and receiving firms will share the cost of reimbursements 50/50.

According to the study “Combating Online Fraud With Digital Identification,” a PYMNTS and Prove collaboration, security is highly important for 83% of consumers, while 53% said consistent experiences across different platforms have a very or extremely large impact on how much they trust in financial institutions.

“These sentiments are shared by regulators, who are increasingly issuing guidelines for uses of authentication technology,” PYMNTS wrote. “Some industry representatives worry, however, that government regulations that focus too heavily on security could handcuff their ability to deliver convenience.”

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