The whole idea behind the Alloy Labs Alliance is leveraging the collective strength and reach of our member banks to create outcomes far beyond anything they could create alone. There is no better place to apply that principle than in fraud prevention. Payments fraud is huge, it’s growing fast, its impact is being felt by institutions, consumers, and businesses everywhere, and there is no strategic advantage to working on it alone. Total losses from fraudulent transactions is expected to grow by 8.2% to $12.16 billion, and the impacts have caught the attention of regulators and policymakers, who are increasing their scrutiny on financial institutions.
We are pleased to announce that we are a founding member of SardineX, a new industry-wide consortium that extends our strength and reach even further to combat payment fraud. Financial institutions, fintechs, card networks, and other industry participants can access fraud or compliance-related data on any entity that transacts across financial services. Participants will be able to query a shared secure and anonymized database in real time to retrieve and incorporate this data within existing infrastructure and risk management processes.
“By working together, we can improve fraud detection and recovery so that we can continue to innovate in the payments arena and keep them as a part of everyday life, said D.J. Seeterlin, Chief Innovation Strategy Officer for Chesapeake Bank and Alloy Labs member. “We’re proud to be a founding member of the consortium Sardine spearheaded and believe this effort will deliver on greater societal good to curb fraud and keep money where it belongs.”
The goal of the consortium is to leverage network effects to increase visibility into fraudulent activity across the financial ecosystem and get real-time fraud data to improve fraud detection. This will help reduce fraud losses for participants and improve the experience for end-user consumers and businesses.
Instead of the typical fraud prevention model of layering checks and controls on top of existing platforms and processes, Sardine builds fraud prevention directly into the foundation of these processes using behavioral biometrics and advanced analytics, which is why we invested in Sardine in our Alloy Alchemist Fund.