Five of the nation’s leading retail banks, Bank of America, BB&T Corporation, JPMorgan Chase, Wachovia, and Wells Fargo together with First Data have announced they have agreed to form Early Warning Services, LLC, to bring together the fraud prevention expertise of the owners with the intellectual property and assets of Primary Payment Systems (PPS) and IDLogix. PPS and IDLogix are subsidiaries of First Data specializing in fraud prevention technologies.
“We’re confident this new venture will strengthen the industry’s defenses in the fight against fraud,” said Leslie Altick, executive vice president, Wells Fargo Bank N.A. and vice chairman of Primary Payment Systems’ Board of Directors. “We believe that by working together we can achieve a common goal that none of us could have achieved individually.”
“First Data believes strongly in collaborating with financial institutions as partners,” said David Bailis, president of First Data’s Financial Institution Segment. “This announcement signals our joint commitment to fighting fraud. Bringing together First Data’s technology competency with the knowledge and best practices of the bank owners expands upon the efforts put forward by Primary Payment Systems, an industry leader in fraud prevention.”
According to recent studies, fraud costs financial institutions and retailers more than $50 billion each year, and this year, over 8 million Americans will have their identities used for fraudulent purposes. Early Warning Services will bring expertise to finding better ways to integrate information and technology in order to fight payment and identity fraud across the industry.
“As fraud continues to reach new levels of sophistication, the speed with which current and accurate information is integrated into the processes that detect, prevent and deter fraud becomes even more critical,” said Paul Finch CEO of PPS and future CEO of Early Warning Services. “Our history of delivering value has been built upon the active participation of financial services organizations of all sizes. We are now better positioned to harness the best practices and experiences of some of the leading financial services organizations to meet the growing fraud challenges of the industry. “
Services Early Warning Services will help financial institutions and other businesses assess risk when establishing and servicing their customers. Utilizing the collective knowledge and best practices in fraud management from leading financial services organizations, the company will integrate information and technology to fight identity and payment fraud. This intelligence is delivered through a suite of Early Warning fraud solutions, resulting in more than $1 billion in annual loss avoidance. Early Warning Services is expected to be a limited liability company owned by Bank of America, BB&T Corporation, JPMorgan Chase, Wachovia, Wells Fargo and First Data. For more information, please visit www.early-warning.com.