Loan companies on the first line in the fight against fraud

11 Sep

A dangerous phenomenon, called “fraud”, is increasingly occurring on the Polish financial market. In short, Fraud is an unauthorized transaction disputed by a financial institution.

Fraud is also struggling with the non-bank sector, where the most common form of this phenomenon is the extortion of cash loans for false or stolen personal data. To protect themselves against this, loan companies are developing anti-fraud systems that are designed to protect both customers and themselves from these types of events.

Financial scams

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Identity thieves are the bane of loan companies and consumers themselves. Persons engaging in this illegal activity, using someone else’s identity or false data, are able to extort only one thousand of victims from one name of the victim.

Identity thieves operate not only in the financial sector, but also in the insurance, telecommunications and leasing industries. To protect against this, more and more advanced security systems are created . The Credit Information Bureau is the first institution in Poland that created the anti-fraud platform.

System Security

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Anti-fraud systems are usually divided into two groups. The first of these is solutions securing one specific communication channel or protecting a given financial institution against one specific fraud (e.g. a system that catches suspicious loan applications).

The second group consists of comprehensive anti-fraud platforms , which are designed to protect clients’ funds at the level of individual transactions. These types of systems are based on complex analytics, using customer profiles, devices, locations, etc., which is able to capture any suspicious transactions and present their risk level (so-called scoring).

Hunting for cheaters

Fraud scoring is a process that allows you to assign a potential customer (application scoring) or existing recipients (behavioral scoring) the likelihood of committing fraud or a crime in the form of forgery or deliberate breach of contract. People who have a high probability of committing abuse are usually denied the service.

Even loved ones steal

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According to statistics, 10 percent. All applications for loans on the Polish financial market are submitted by people trying to extort money into someone’s name or using false personal data. There are also cases of people who extort money from the immediate family.

These activities are usually difficult to detect because such people have very detailed knowledge of the personal data they use, and also have full access to email accounts, telephone numbers and even the victim’s bank accounts.

Let’s protect our personal data by providing it only in a responsible and secure manner to trusted persons and institutions.

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