Spanish Banks Launch A Tool That Will See Lenders Share Data

Three of the largest lenders in Spain, Banco Santander, BBVA, and CaixaBank, have partnered to offer a solution to the menace of financial fraud. The three lenders are working on launching tools that will address the issue of fraud by making information readily available.

Spanish lenders unveil FrauDfense

The three lenders are working on launching tools that will facilitate the exchange of important data and information. These details will be used in preventing financial crime. To achieve this, they have unveiled a solution known as FrauDfense.

FrauDfense is a platform that will merge the anti-fraud initiatives offered by the three banks. This solution has already been submitted to the relevant regulatory and supervisory authorities for approval.

The alliance between the three lenders will initially focus on launching a tool that will be used to share information related to fraudulent practices and the response measures that need to be used in cases where fraud has been detected. The tool will also guarantee that information is kept private and secure.

Banco Santander, BBVA, and CaixaBank will work together to handle the issue of fraud, which usually takes different forms. Some of the different forms of fraud include new account fraud, where the identities of customers are stolen to purchase products, card payments fraud, and online fraud.

The FrauDfense tool will initially start with the three lenders before being rolled out to more lenders in the country. The banks and companies operating in other industries and are interested in sharing information will also be allowed to join. These banks will share information pertaining to fraud, which will help protect customers, organizations, and society in general.

Carlos Requena will serve as the CEO of FrauDfense, with the board of directors being comprised of two representatives from every bank. The other executives at this platform include Carles Solé Pascual, who will be the chief information security officer, and Natalia Ortega, who will be the first chair at FrauDfense. The role of the first chair will be rotated after every two years between the three member banks.

FrauDfense seeks to protect customers

The president of the Council of Consumers and Users, Carlos Ballugera, said that the project would be a positive development for the banking industry if it protects consumers from identity theft and heightens the level of security offered by banks.

“The initiative will be positive as long as it protects customers from identity theft and increases security when operating with their banks. Regarding the persecution of fraud generated by the same clients, it is also an important initiative to avoid, prevent and prosecute money laundering,” Ballugera said.

Ballugera has also opined that it was important to preserve the right of customers to data protection and to ensure that there is no commercial use of the data gathered from anti-fraud investigations. Moreover, the initiative might have a domino effect and spread across the entire financial industry.