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
The head of fraud and data strategy at AtData, Diarmuid Thoma, talks about the importance of email addresses in preventing fraud.
Experian's fraud prevention data network, in existence since 1991, will be available for use in North America later this year.
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
In this episode we talk with the COO and Co-Founder of SEON, Bence Jendruszak, as he discusses fraud prevention tools and the different types of fraud that fintech companies should be focused on today.
Fraud is rising, and with real-time payments taking an ever greater hold of the financial system, faster ways to combat are needed.
A husband and wife from Sri Lanka were arrested in Canada for fraud and money laundering; the couple reportedly used fraudulent checks and synthetic identities for fraudulent charges and purchases; both are charged with fraud of CAD5,000 ($3,729) and possession of proceeds obtained of over CAD5,000 ($3,729); the fraudulent charges are an example of the emergence of sophisticated synthetic identities that are more difficult to be detected by fraud prevention systems. Source
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.
The service from Whitepages Pro can add another layer to identity verification for online lenders; it provides lenders with analysis of a potential borrower's associated phone number, email, mailing address and business name; Whitepages CEO Rob Eleveld says the service gives lenders a broad profile of the borrower which in most cases is difficult to fraudulently create; it can also be accessed through APIs which makes connecting to the service easy for lenders. Source
Real-time payments systems have globally increased the threat of related fraud. Will FedNow follow the trend?