Commerzbank, Deutsche Bank and the German Savings Banks Association form a joint venture to fight fraud

Commerzbank, Deutsche Bank and the German Savings Banks Association (DSGV) have set up a joint venture that lets financial institutions share information on fraud cases securely and lawfully, so fraud is caught earlier. Stakes were not disclosed.

The first product, already at an advanced stage of development, targets phishing, investment and merchandise fraud and romance scams. Institutions can share information on accounts used for fraud through a common platform, and multi-party computation lets them compare data without disclosing it in full. Each institution keeps its own decisions on protective measures.

The partners plan to extend the infrastructure to more fraud-prevention and compliance applications, and to other obliged entities as customers.

Commerzbank chief risk officer Bernd Spalt said financial crime does not stop at company boundaries. DSGV board member Joachim Schmalzl called payment security a shared responsibility of the banking industry, not a matter of competition.