Meghan Sutherland, CEO, FiVerity
The Classic Dilemma
Two suspects are arrested for a crime. They’re held in separate cells with no way to communicate. Each is offered a choice: betray the other for a lighter sentence or remain silent and risk a harsher penalty if the other betrays them. This game theory scenario, famously known as the "Prisoner’s Dilemma," is a classic example of the conflict between self-interest and cooperation.
In 1962, game theorist Robert Axelrod studied cooperative behavior through this now-famous experiment. Using the Prisoner's Dilemma framework, Axelrod found that individuals who chose cooperation over self-interest consistently benefited more over time. The lesson? Collaboration can drive success.
Fast forward to today, and industries face a similar challenge: Should companies share intelligence to combat fraud collectively, or guard it, hoping for a competitive advantage? As Axelrod’s research shows, cooperation isn’t just ethical - it’s strategic.
The Cost of Competition
When companies across sectors choose competition over collaboration, they leave themselves vulnerable to sophisticated fraudsters. Picture this: A town where each house builds a fence, but no one shares information about thieves. Every homeowner, from healthcare providers to tech firms, operates in isolation, creating gaps that criminals can exploit. Siloed data reduces the ability to spot fraud patterns, leaving the entire ecosystem more exposed. Fraud doesn't discriminate, meaning today’s tech breach may lead to tomorrow’s bank failure.
The Power of Cooperation
History shows that when people work together, they can overcome shared challenges. In Axelrod’s experiment, participants who consistently cooperated built trust and gained a competitive edge. The same principle applies in the fight against fraud. Institutions across industries—finance, tech, healthcare—can pool their knowledge to prevent fraudsters from taking advantage of information silos.
By choosing to share intelligence, companies collectively strengthen their defenses. Shared data allows institutions to detect threats more quickly and preemptively adjust their security measures. Studies have demonstrated that cooperative networks significantly reduce fraud, safeguarding industries and building trust in the market.
FiVerity’s Role in Enabling Collaboration
At FiVerity, we believe in the power of collaboration to combat fraud. Our platform enables institutions across industries to share and aggregate data, enhancing real-time detection and providing accurate risk assessments. Using AI and machine learning, FiVerity analyzes shared information to deliver actionable insights that help institutions protect themselves—and each other.
FiVerity transforms the traditional competitive approach into a cooperative one. By creating a hub for collaboration, one institution’s discovery of fraud benefits all others. Together, we turn a fragmented defense into a unified front.
Strength in Numbers
The message is clear: Cooperation is key to preventing fraud. In Axelrod’s Prisoner’s Dilemma, those who chose to cooperate consistently achieved better outcomes. Similarly, when industries work together, they not only protect themselves but also contribute to a safer, more resilient ecosystem.
Fraud is evolving fast, and the stakes are higher than ever. Join FiVerity, share your insights, and benefit from collective knowledge. Together, we can build a more secure future—one where collaboration beats competition, every time.
Take Action Today
Fraud is a complex, ever-evolving challenge, but you don’t have to face it alone. FiVerity offers a platform that empowers institutions to collaborate, share fraud-related information, and strengthen their defenses. Schedule a free consultation today to see how FiVerity can help you safeguard your organization and contribute to a more cooperative, robust approach to fighting fraud. Together, we’re stronger.