Credit risk analytics company Equifax announced recently that it has partnered with iovation (News - Alert), a mobile and online fraud prevention business, to produce fraud prevention solutions for deployment in Central America.
Equifax reportedly has a strong presence in Central America, and iovation should, through the partnership, be able to strengthen its own portfolio by dealing with a company that is familiar with the region.
The call for fraud prevention in Central America is high, the official announcement states. People in Latin America, it says, experience greater than $430 million in fraud each year. Representing a subset of that total, banks experience $50 million in losses each year as a result of theft, and phishing and other illegal activities account for an additional $50 million.
The total $430 million is expected to continue to rise. Currently, it follows an annual increase of $234 million a year. This is partially to do with the increased prevalence of mobile device usage in the region. The more consumers use such devices to access their online bank accounts, the more they are placing themselves in danger of experiencing some type of electronic-based fraud.
The official announcement did not discuss the exact nature of the product Equifax and iovation would be producing. iovation is known for its development of fraud prevention techniques that harness device identification, shared device reputation, and real-time risk evaluation methods. It reports that more than 3,000 fraud managers in various business sectors -- retail, financial services, insurance, social network, gaming, and others -- use iovation's database of Internet-connected devices to determine the amount of risk associated with financial transactions coming from any single device. It says that, with the help of its database, it protects more than $10 million transaction and stops 200,000 attempts to commit fraud each day.
Equifax will certainly be able to help iovation develop a product for Central America that protects banks and citizens with its experience of developing analytics products. It has long since used differentiated data to create analytics products that deliver insights about customer spending habits and financial relationships.
Edited by Adam Brandt