Sardine forms industry consortium to help tackle payment fraud
Fraud detection and risk management platform Sardine has formed SardineX, a new consortium of industry players that aims to help curb the rapid rise in payment fraud.
Sardine forms consortium to help fight payment fraud
Bringing together financial institutions including banks, fintechs and payment service providers, the consortium’s goal is to provide real-time technology under a privacy-oriented data-sharing framework to establish the credentials of senders and receivers of funds “no matter the rail on which the transaction is conducted”.
Founding members include Chesapeake Bank, Visa, Airbase, Blockchain.com, Alloy Labs Alliance, iLex, and Novo, with more members expected to join in the coming months.
“How we move money has fundamentally shifted over the past few years, and the only way we can close the massive gaps that fraudsters leverage to hurt shared customers is to improve communication between parties who facilitate payments today,” says Soups Ranjan, Sardine co-founder and CEO.
Sardine decided to put together the consortium following the emergence of real-time payments and the mainstream adoption of peer-to-peer (P2P) payments in the US, “which has numerous fraud challenges”, the company says. “The rapidity of payments was convenient and made recovery difficult in instances of fraud or mistaken transactions.”
Sardine adds that SardineX “will offer a shared database where industry-wide participants can access fraud or compliance-related data on any entity that transacts across financial services”.
“Participants will query this database in real time to retrieve and incorporate this data within existing infrastructure and risk management processes to better assess that entity,” the firm says.
The consortium will be structured as an independent organisation with a privacy-oriented data-sharing framework and any organisation that initiates or facilitates money movement can join.
