Managing Lending Fraud: Digital Identity and Machine Learning Are Table Stakes

Report Summary

Managing Lending Fraud: Digital Identity and Machine Learning Are Table Stakes

A strong control framework at the point of application is critical for lenders.

Julie Conroy
Research Director
Leslie Parrish
Senior Analyst

Boston, February 18, 2021 – With 39 billion data records breached since 2013, organized crime rings have plenty of fodder in the form of stolen and synthetic identities. The attacks are highly industrialized, using both automation and click farms, and in consumer lending all the chips are often riding on the decision the lender makes at the point of application. With unsecured loans in particular, once the loan has been funded, there is little recourse for a lender if it has made the wrong decision and sent the money to a fraudster.

This Impact Report discusses consumer lenders’ current and planned fraud mitigation and identity verification capabilities, budgets, and investment plans. It is based on an Aite Group survey of executives at 22 depository and nondepository institutions headquartered in North America in Q4 2020 and Q1 2021. It is also informed by Aite Group’s survey of 46 North American fraud executives at its third annual Financial Crime Forum in September 2020.

This 25-page Impact Report contains 11 figures and seven tables. Clients of Aite Group’s Fraud & AML service can download this report, the corresponding charts, and the Executive Impact Deck.

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This report mentions ACI Worldwide, Acuant, Accertify, Acxiom, Arkose Labs, Au10tix, AuthenticID, Aver, BAE Systems, BehavioSec, Bleckwen, BioCatch, Boku, Bottomline Technologies, Brighterion, buguroo, Callsign, Cleafy, Daon, DataVisor, Early Warning Services, Ekata, Entersekt, Entrust, Equifax, Experian, F5, Facebanx, Featurespace, Feedzai, FICO, Fourthline, FraudHunt, GBG/IDology, IBM Trusteer, ID Insight, ID R&D, IDenfy, IDMERIT, Incognia, INFORM GmbH, Intellicheck, IPQualityScore, iProov, Ipsidy, iSoft, Jumio, Kofax, LexisNexis Risk Solutions, MaxMind, Melissa Data, MicroBilt, Mitek, Neothone, Neuro-ID, Neustar, NuData Security, Onfido, OneSpan, Oneytrust, Optimal IdM, Pipl, Precognitive, Prove, Refinitiv, RSA Security, Samsung SDS, SAS, SecuredTouch, SEON, Shufti Pro, Simility, Socure, ThetaRay, ThreatMark, TransUnion, Trulioo, Trusona, TypingDNA, Veratad, Veridas, XTN, and Zumigo.

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