The idea is to protect consumer accounts from fraud so well that the company is backed by PayPal and used by the paytech firm for its protection.
Financial institutions have access to a vast amount of customer data, including account information, transaction history, and credit scores. However, much of that data is siloed by different payment platforms and networks and out of reach when fraud teams need it most. Banks can address this data drought problem by finding ways to modernize their tech stack, getting creative with existing rails, and leaning on providers to gain scale.
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
American Banker discusses the evolution of online lending fraud and the industry's vulnerabilities; the combination of synthetic identities and multiple loan inquiries known as loan stacking have increasingly become a threat in the industry; while a number of new systems have been implemented to mitigate fraud the nature of the business makes it more susceptible with fraud prevention solutions becoming more prevalent. Source
Experian's fraud prevention data network, in existence since 1991, will be available for use in North America later this year.
In episode 365 we talk with Mike Tuchen, CEO of Onfido, as he discusses identity verification and how financial institutions are balancing the need for ease of use and fraud prevention.
In this episode we talk with the CEO and Co-Founder of Sardine, Soups Ranjan, about fraud prevention. He discusses the trends in fraud attacks today and how fintechs can prepare themselves in their battle with fraudsters.
Real-time payments systems have globally increased the threat of related fraud. Will FedNow follow the trend?
SoFi said it missed their internal 4th quarter earnings projections due to lower than expected loan performance, increased hiring costs and expenses related to management changes according to the WSJ; the company also said they expect the loan performance trend to continue into 2018 as the look to refine their credit model; the company is also looking to improve fraud prevention, automate loan processing and get better at collections. Source.
Sardine, a leader in the fraud prevention and compliance space has upped its game against widespread fraud.