Recently, data breaches have been widespread making countless identities available for sale on black markets that can be accessed, for example, on the “Dark Web.” The stolen data from these breaches, as well as other identity theft schemes, contains enough personal information on a consumer for a fraudster to accurately impersonate that individual. We call these compromised identities “Perfect Identities.”
This is where fraudsters capitalize – they can purchase a perfect identity and attempt to obtain a fraudulent loan. Lending organizations face unique challenges like needing to be able to approve loans and deposit funds quickly – sometimes in as little as one day.
So, how can consumer lending organizations be confident that their customer, “John Smith,” really is John Smith and not a fraudster with his identity in hand? Simply verifying an individual’s identity in today’s lending landscape isn’t enough. Lending organizations must take it another step further.
IDology’s 2015 Fraud Report noted that, for a third year in a row, suspected fraud attempts are rising. As suspected fraud attempts remain problematic for organizations, and as these attempts continue to climb, the need for businesses, especially lending organizations, to detect fraudulent activity and take the steps needed to protect their organizations is clear.
This is where a robust and multi-layered identity verification and fraud prevention platform comes into play. By looking at an array of attributes including, identity, device, activity, location and other attributes, consumer lending organizations will be able to determine if the borrower is a legitimate consumer, a fraudster, or, if they are not able to approve the borrower initially with a high level of trust, they then have the ability to add layers of verification to the application to ensure the legitimacy of the transaction. Additionally, employing such a platform also enables your lending organization to comply with regulatory compliance measures.
As a lending organization, your goal is to approve legitimate customers without any unnecessary layers of friction. With a platform that looks at multiple attributes, in real-time, you’ll not only be able to not only onboard borrowers quickly and streamline the loan application, but also have the confidence that the customer is actually who they say they are. At the end of the day, fraud will decrease and your lending organization’s bottom line will increase due to quicker borrower onboarding.
Learn more about enhancing your fraud prevention platform through ExpectID by contacting a representative today at (866) 520-1234.