Strengthening fraud defenses in the era of data breaches

Alain Meier, Head of Identity at Plaid, has announced that data breach reports will be included in Plaid Beacon, an anti-fraud consortium designed to protect consumer data and decrease fraud for customers. This addition aims to help organizations better safeguard themselves and their users from fraud and abuse by swiftly identifying compromised consumer identity and financial data. Data breach reports can reduce potential fraud across various use cases such as onboarding, existing user account checks, account resets, and money sends. By incorporating additional verification steps during onboarding or requiring re-verification of identities, companies can help prevent identity fraud and account takeover threats. Plaid Beacon's mission is to stop repeat fraud, limit the abuse of stolen identities, and create a safer financial ecosystem for everyone.