New portal will allow participating companies to share fraud threats, assess risk and deter fraud attempts
WINDSOR, Conn., Oct. 24, 2018 — LIMRA and LOMA have developed a new portal, called FraudShare, to help companies with life, annuity, asset management and retirement plan services product lines identify and deter fraudulent attacks.
LIMRA research finds that three quarters of firms surveyed believe the incidence of fraud is becoming more prevalent in life insurance, annuities and retirement plans. More than half of companies are seeing an increase in fraud attempts in the defined contribution plan space (chart). The study found the most common attacks center around account takeovers, claims and disbursements, which cost the industry billions of dollars.
“Criminals are becoming more sophisticated in their attempts to take over clients’ accounts and exploit any vulnerabilities they can find in life insurance, annuity and institutional retirement operations,” said Robert Kerzner, president and CEO, LIMRA, LOMA and LL Global. “We believe part of a comprehensive fraud prevention system for the industry should include a tool for companies to share detailed information about how the fraud is being perpetrated in real time. We built FraudShare, in collaboration with more than 30 financial services companies, to be the fraud information-sharing and alert system for the industry.”
In September 2018, seven teams of developers and designers from the life insurance and retirement industries participated in a LIMRA/LOMA hackathon to help create an innovative information-sharing platform. LIMRA and LOMA took the best aspects of the seven submissions to develop FraudShare.
Still a prototype, FraudShare will initially focus on account takeover fraud in the individual life insurance, individual annuity and retirement plan lines of business. LIMRA and LOMA will scrub the data submitted to the industry clearinghouse, apply analytics and generate alerts. These alerts will indicate the type of fraud scheme, its threat level and information that will enable companies to identify fraudsters and take preventive actions. Companies also will be able to benchmark their fraud experience versus their peers and communicate with one another via a secure network.
Interested parties can “test-drive” FraudShare at the Fraud Symposium during LIMRA’s 2018 Annual Conference in New York City. LIMRA and LOMA expect to officially launch FraudShare within the next 90 days.
To learn more about the Fraud Symposium or the LIMRA Annual Conference, please visit: www.limra.com/annual.
Serving the industry since 1916, LIMRA, a worldwide research, consulting and professional development organization, is the trusted source of industry knowledge, helping more than 600 insurance and financial services companies in 64 countries. Visit LIMRA at www.limra.com.
Established in 1924, LOMA is committed to business partnerships with over 900 worldwide members in the insurance and financial services industry. LOMA’s goal is to improve company management and operations through quality employee development, research, information sharing and related products and services. Visit LOMA at www.loma.org