February 8, 2023

Fraud prevention is an evolving challenge. As criminals deploy increasingly sophisticated ways to scam consumers into handing over their personal information and abuse it for financial gain, the need for lenders to have robust fraud prevention systems in place has never been more critical.

 

Fraud solutions is a foundational building block to a successful digital experience. Businesses and organisations must walk the line between a frictionless customers journey and security, minimising the checks genuine customers must go through and delivering a verdict in real-time, while also ensuring that checks are robust enough to flag any questionable applications.

 

The vast majority of applications to lenders – around 99% – are genuine. Fraud prevention can be akin to finding a needle in a haystack, albeit one which can cause substantial reputational and financial damage to both lender and the consumer. Fortunately, new technologies – based on untraditional data sources – are making a real impact in the battle against the fraudsters.

 

 

How fraud is evolving

 

Lenders, businesses, and consumers need to be vigilant of the mutating ways in which fraudsters act, with new trends emerging over 2022, and no anticipated reduction in levels of activity in 2023. Experian insights revealed that identify fraud cases rose by more than a fifth (21%) last year, indicating the scale of the challenge.

 

For example, the easy availability of rich Personally Identifiable Information…

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