Synthetic fraud is when fraudsters use a collection of information to create a fake identity for fraudulent loan applications; data verification regulations are also making synthetic fraud more challenging to detect; Auriemma Consulting Group provides three strategic suggestions for online lenders: 1) strengthen front end detection and prevention 2) use data analytics to learn from synthetic accounts and 3) enrich reporting and information sharing. Source
Fraud is rising with the increased reliance on alternative payment methods, and AI could stop it. FIs have difficulties in adopting the tech.
Insights have found the switch to more digital transaction since the start of the COVID-19 pandemic show that individual and organizational risk is even greater now.
The UK’s Financial Conduct Authority has issued new guidance to payment providers and e-money companies on safeguarding customers’ funds; the...
ID Analytics introduced the Online Lending Network in October 2016 with the goal of providing greater resources to lenders for mitigating fraud; Online Lending Network members access internetwork supplied data and information from ID Analytics for greater detection of fraudulent loan applications and loan stacking; ID Analytics reports that the network has achieved visibility into 75% of US domestic marketplace lending activity since inception with membership increasing by 50% since its launch. Source
Ron Suber discussed the challenges that online fraud can present to marketplace lenders in his keynote speech at the Fintech Fraud Summit last week in San Francisco; to mitigate fraud, companies must have a comprehensive risk and compliance system that protects it from attacks and fraudulent loans; Ron Suber outlined Prosper's risk and compliance approach in his presentation providing an example for marketplace lenders seeking solutions for mitigating and managing fraud. Source
Loan stacking has reportedly been influencing an increase in default rates for marketplace lenders; TransUnion has reported data on delinquency rates and online fraud; firm announced an expansion of its Fraud Prevention Exchange at LendIt USA to help mitigate online lending fraud and specifically loan stacking. Source
Remote ID is quickly becoming part of the new normal and identification verification startup Onfido has been the benefactor; the...
Sardine, a leader in the fraud prevention and compliance space has upped its game against widespread fraud.
Fraud is rising, and with real-time payments taking an ever greater hold of the financial system, faster ways to combat are needed.