Creditinfo has launched a new Integrated anti-fraud solution to combat identity fraud for the Kenyan mobile lending market. According to the credit information and risk management solutions provider, the solution uses advanced analytics to combat the fraud.
“The credit bureau already contains significant data which can be used to highlight potential fraudulent applications, this solution is integrated to the Instant Decision Solution which is used by many mobile lenders to optimize the lending accept-reject and limit allocation”, said Dmitry Batygin, Product Manager at Creditinfo Solutions.
According to a recent article by Mckinsey, many fraudsters are now using fictitious, synthetic IDs to draw credit. Applying for credit using a combination of real and fake, or sometimes entirely fake, information creates synthetic IDs. The act of applying for credit automatically creates a credit file at the bureau in the name of the synthetic ID, so a fraudster can now set up accounts in this name and begin to build credit.
The article notes that rather than using a stolen credit card or identity (ID), many fraudsters are now using fictitious, synthetic IDs to draw credit. Synthetic ID fraud is the fastest-growing type of financial crime in the United States, accounting for 10 to 15 percent of charge-offs in a typical unsecured lending portfolio and is now spreading rapidly across other continents like Africa.
The Crediftinfo solution is integrated with the Credit Bureau System and the service deliverable is based on the automatic analysis of the whole content of the CBS database – all suspicious information is analysed and the end user gets the special report providing a scoring calculation based on the likelihood of the presence of fraud during the transaction, business or insurance claim.