Case Study: Live Oak Bank prevents fraud and reduces alert volume with DefenseStorm Fraud Detection

Live Oak Bank - Customer Case Study

Live Oak Bank, a prominent online bank and a leading SBA lender, faced significant challenges with its outdated fraud detection process. Their legacy system was slow, delivered reports with a 24-hour delay, generated a high rate of false positives, and lacked customizable rules, making it a tedious and inefficient operation for their team. They turned to the vendor DefenseStorm for a solution.

By implementing DefenseStorm's fraud detection solution, Live Oak Bank achieved outstanding results. In one instance, the system prevented an emerging fraud scheme targeting 86 accounts. The solution has provided an impressive ROI, preventing an average of $10,000 in exposure per fraudulent event. The fraud team now benefits from more actionable alerts, with 50% confirmed as fraud, and has reduced its daily alert examination workload from over 200 to about 50, allowing them to focus on genuine threats.

Live Oak Bank

Erin Armstrong

Vice President Senior BSA/Fraud Analyst