Unit21's Fraud DAO Expands, New Features, Integration and Growing Membership

February 26, 2024

As part of its mission to empower the financial sector’s fight against fraud, Unit21 has integrated its Fraud Consortium, also known as the Fraud DAO, with the core Unit21 Platform. By enabling collaborative data sharing between banks, credit unions, fintechs, and other industry players natively within Unit21, the enhancements to the consortium will contribute an innovative approach to curbing fraud’s rising threat in the financial sector.

In this update, we're excited to dive into three pivotal developments.  

  1. The introduction of new features and seamless integration into the Unit21 platform
  2. The unveiling of our patent-pending methodology for enhanced security and easy data contribution
  3. The significant expansion of our Fraud Consortium with new members, enabling us to scale and extend our reach in the fight against financial fraud.

New Features:


The top-requested application for the Unit21 Fraud Consortium is the ability to screen our members' end customers against the Fraud Consortium at onboarding. This allows members to ensure only the right profile of customers are able to access their full suite of products and services, thereby ensuring a smoother experience for both the customer and the financial institution (FI).


Ongoing monitoring 

We have released an additional feature for Fraud Consortium  members to screen their end customers against the Fraud Consortium continuously, throughout their lifecycle. This allows members to ensure that their legitimate customers are always secure and quickly detect cases of compromised account credentials and bust-out fraud.

Blocked reasons with One Click Fraud Labeling 

The key components to Fraud Consortium  based rules are our standardized fraud labels - Blocked Reasons. These are labels consortium members submit as part of their review process -  usually coupled with a disposition to an Alert or a Case in Unit21. Non-Unit21 members are able to submit Blocked Reasons to the Fraud Consortium  via our API directly. The list of blocked reasons - which includes commonly known fraud labels such as Account Takeover,  Social Scams and Stolen Identities, to name a few, comes from extensive industry research through partnering with professionals in our Fraud Consortium  community.

Supplying your fraud labels has also never been easier - it is as simple as configuring a custom workflow button to share bad actors’ data with the Fraud Consortium, where it is stored securely and cannot be accessed by non-members.

Fraud DAO: A Consortium Solution to Fraud

Unit21’s new Fraud Consortium  features seamless integration for teams using it as part of a more effective fraud prevention strategy. It’s free to join and offers four core benefits for members.

1. Baked-in privacy

The Fraud Consortium allows secure data sharing, leveraging a proprietary patent-pending data hashing method that enables data sharing without ingesting personally identifiable information (PII). This allows members to share holistic risk insights while eliminating privacy concerns and safeguarding members against data breaches. 

2. Custom workflows

Users can configure workflows for alerts and cases to easily share the results of fraud investigations. The results subsequently feed into Unit21’s rule engine, allowing cross-industry collaboration natively through the platform.  


3. Seamless integration

The Fraud Consortium, in conjunction with a financial institution’s own risk signals and third-party data, can help combat sophisticated fraud attacks. Unit21 customers can also leverage two out-of-the-box consortium rules to screen both newly onboarded users, as well as their entire existing user base against the Fraud Consortium.

Since the Fraud Consortium’s data integrates with the Unit21 Platform, existing customers can create rules that screen against specific fraud patterns that are unique to their organization. Users can deploy these rules at scale with minimal engineering effort. All generated alerts are accessible to firms’ fraud and risk teams in one unified environment.

4. Industry-validated data insights

The Fraud Consortium’s comprehensive dataset, which aggregates information from over 35 million adults in the United States, now includes industry-standard fraud labels defined by the consortium members. Our solution aggregates these labels in real-time, ensuring that every member in the Fraud Consortium is immediately alerted upon confirmation of fraudulent activity. The Fraud Consortium is picking up momentum with over 35 member organizations participating and rapidly growing, including members like WebBank, DriveWealth, Uphold, Gusto, PrizePool, Fortress Trust, Prime Trust, and Metal Pay.

Towards the Future with Unit21’s Fraud Consortium

As we navigate the complexities of modern financial crime, the collaboration within the Fraud Consortium underlines our commitment to innovation and security in the financial sector. Here's a recap of our exciting momentum:

New Features for Enhanced Security:

Onboarding Screening: Enables members to screen customers against the Fraud DAO during onboarding, ensuring a secure and streamlined customer experience.

Ongoing Monitoring: Offers continuous screening of customers against the Fraud DAO, safeguarding legitimate users throughout their lifecycle.

One-Click Fraud Labeling: Simplifies the submission of fraud labels, enhancing the consortium's collective intelligence with standardized fraud labels such as Account Takeover, Social Scams, and Stolen Identities.

Innovation in Privacy and Collaboration:

Our patent-pending data hashing method facilitates secure data sharing without exposing personally identifiable information (PII), ensuring privacy and compliance are never compromised.

It's never been easier to participate with our customers reporting less than two weeks of integration time.

Momentum and Growth:

The Fraud DAO proudly counts over 35 members. This growing consortium is not just expanding in numbers but also in the wealth of data and shared insights to combat fraud effectively.

Stay Connected and Informed

Don't miss out on the opportunity to gain insights directly from our consortium members. Follow us on LinkedIn and tune into our upcoming video series to hear firsthand experiences and stories from the front lines of fraud prevention.

To learn more about how Unit21 can help you flag more bad actors than ever before, schedule a demo

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