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XOR Cross-Industry Study Reveals Data Sharing and New Technology Can Reduce Credit and Fraud Losses by $1B Annually for Small Business Loans and Services
[September 02, 2015]

XOR Cross-Industry Study Reveals Data Sharing and New Technology Can Reduce Credit and Fraud Losses by $1B Annually for Small Business Loans and Services


XOR Data Exchange today released their cross-industry study of micro-business and small business risk and fraud trends, identifying the most persistent authentication and credit default issues facing communications providers and financial institutions.

Study participants, including a broad cross section of large B2B organizations and lenders, were asked to provide up to four years of through-the-door historical application and subscription data, along with the monthly credit and fraud performance information associated with those accounts. This information allowed XOR to complete a four-year longitudinal analysis of over six million communications and financial services applications stemming from micro-to-small businesses' requests for credit or services.

"Existing small business risk solutions do not adequately address the growing micro-to-small business marketplace," said Mike Cook, founder and CEO of XOR Data Exchange. "Because of the tiny information footprint of each individual small business, sharing data across industries in conjunction with new technology is the best way to mitigate credit and fraud risk."

Some of the recent surge in fraud in the micro-to-small business area has been blamed on the increasing value of subsidized communication devices and higher credit limits and loan amounts. Fraudsters perpetrating identity theft and synthetic fraud against consumer identitie can walk away with one or two valuable devices or a moderate credit line. A fraudulent small business applicant can disappear with much more.



"We are excited to participate in this effort with XOR," said Cason Coplin, Director, Risk Management and Customer Acquisition Strategy for Sprint (News - Alert). "Their technology does an outstanding job of identifying risk in the small business sector. We appreciate the transparency of XOR's business model as it enables us to understand where our information is at all times, and how it is being used."

The public version of the report, "Identifying Fraud and Credit Risk in the Smallest of Small Businesses," is available for download at xor.exchange/smallbizreport/.


XOR's permission-based data exchanges allow companies to participate in cross-industry fraud, credit, compliance and marketing efforts with full confidence in the transparency and fairness of the use of their data. Exchange members maintain ownership over their data, including who is allowed access and how much can be shared. In return for sharing their own data, exchange members get access to valuable second-party information to help better identify fraud and credit risks in new small business account openings.

About XOR Data Exchange

XOR builds permission-based data exchanges that help companies solve enduring business challenges while maintaining complete ownership and control over the data they contribute. XOR offers exchange members an unprecedented level of control over how their data may be used, who is allowed access, and how much can be shared. In return for sharing their own data, exchange members get access to otherwise unobtainable datasets to help better identify risk, reduce fraud and engage potential customers with thin or nonexistent credit histories. To learn more, visit www.XOR.exchange.


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