Lucinity, Sift partner for unified fraud and AML management

With an aim to combat the escalating threat of financial crimes, Lucinity and Sift formed a strategic partnership aimed at unifying fraud and anti-money laundering efforts within Lucinity's integrated FinCrime compliance platform. This collaboration, the partners stated, leverages Sift's AI-powered fraud detection capabilities to enhance case management and workflow automation, providing businesses with a robust solution to navigate the complexities of financial crime.

As cybercriminals increasingly exploit technological advancements to evade detection, the need for cohesive and sophisticated fraud prevention mechanisms has never been greater. According to a recent report by Allied Market Research, the global fraud detection and prevention market is expected to surge from $29.5 billion in 2022 to $252.7 billion by 2032, growing at a compound annual growth rate of 24.3 percent. This growth is fueled by advancements in big data analytics and cloud computing, alongside a rise in mobile payment usage.

Addressing challenges in fighting fraud

The partnership between Lucinity and Sift addresses one of the primary challenges in the fight against financial crime: the fragmentation of systems and data. Udi Nessimyan, president and chief revenue officer of Lucinity, highlighted that their collaboration is set to reduce investigation times dramatically, allowing compliance teams to manage fraud alerts more effectively. With the integration of Sift's fraud detection capabilities, Lucinity users can expect real-time fraud screening, automatic payment holds for suspicious transactions, and streamlined reviews of flagged payments through a unified case management system, Nessimyan affirmed.

Sift's Global Data Network, which analyzes over 1 trillion events and identity signals annually, will enhance Lucinity's platform, which is expected to enable organizations to adjust fraud detection parameters to align with emerging threats. This is crucial, as the report indicates the banking, financial services and insurance sector continues to account for the largest share of the fraud detection market due to its vulnerability to sophisticated attacks.

Sift Chief Marketing Officer Armen Najarian emphasized the necessity of leveraging AI in this ongoing battle. "Cybercriminals are increasingly leveraging AI to bypass traditional anti-money laundering and fraud controls," he said. "Through our partnership with Lucinity, businesses can adopt a proactive stance against fraudsters, ensuring robust protection and facilitating fearless growth."

North America a leader in fraud detection tech

The Allied Market Research report also pointed out that while the solution segment dominated the market in 2022, the service segment is projected to witness the largest growth, driven by the demand for specialized services to effectively integrate and optimize fraud detection technologies.

As the retail sector also faces a significant uptick in fraud attempts—anticipated to grow at a CAGR of 32.7 percent—the integrated solution provided by Lucinity and Sift positions businesses to better protect themselves. Retailers are increasingly targeted due to the high volume of transactions and the sensitivity of customer data involved. This context makes the partnership between Sift and Lucinity even more relevant, as it offers tools that can adapt to the fast-paced and ever-changing nature of fraud in the digital economy, industry observers have noted.

Furthermore, the North American market, particularly the United States, remains a leader in adopting advanced fraud detection technologies, largely driven by significant investments in cybersecurity. The anticipated growth in this region underscores the critical need for innovative solutions.

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