Innovative Telco Data-Driven Fraud Detection Tools For Financial Institutions
Innovative Fraud Management and Detection Solutions
Technology has made transactions and digital credit scoring more convenient, but it has also provided another channel for fraudsters to easily commit identity theft and synthetic fraud when applying for savings accounts, loans, and other banking products. There’s no limit to the variations in fraudulent loan applications, including:
- Identity: Usage of stolen or synthetic identity composed of seemingly legitimate personal details and credit data.
- Straw borrower: An applicant with a poor credit file can convince relatives or friends with healthy credit scores to borrow on their behalf.
- Income: Intentional misrepresentation of the existence, source, or amount of income.
- Employment: Failure to verify employment.
- Undisclosed debt: Failure to disclose past or current debts.
- Property value: International misrepresentation of property assets to improve the terms of the deal.
Relying on traditional sources of customer data information can lead to fraudulent practices getting overlooked in credit and loan applications. Even a CIC credit report can be rigged by the more sophisticated fraudsters. This is why alternative fraud detection solutions, such as geo location fraud tools, have become top priority for banks and financial institutions in the Philippines.
How do lending companies in the Philippines use alternative data detect fraud?
Alternative data refers to information that cannot be acquired from credit bureaus or from the application process itself, which are two primary sources of data used by firms in the financial services industry. Alternative data includes telco data, which can be a key factor in the decision-making process of determining the creditworthiness of an individual.
Many lending companies in the Philippines have started adopting telco data-based fraud verification and authentication solutions to reduce fraudulent loan and credit card applications. The fraud detection tools help distinguish fraudulent from legitimate transactions by evaluating factors such as online activity of customers their geo-locations.
FinScore’s Fraud Verification Tools
FinScore helps banks, lenders, and other financial firms distinguish fraudulent from legitimate transactions. We do this by leveraging alternative telco data such as geo-locater tags, frequency of calls, and behavior on social media.
Take a look at our range of fraud verification tools:
A Look Into FinScore’s Fraud Detection Process
Curious to see how we use alternative data to help in fraud verification? We’ve outlined the steps and features so you can leverage the power of Social Presence Score in your fraud verification process.
How it works
We need at least one of the following customer features:
- Cellphone number
- E-mail address
- IP address
The results are then validated through our standard API. We take a look at messaging activity, which gives you the customer’s profile picture, and last seen status on apps such as Viber, Telegram, and Whatsapp. We also provide you with the customer’s IP information by detecting TOR, VPN, and Web Proxy. After identifying the online activity of your customer in any of the top mobile or web apps, we give them a score of 1-5. It’s a solid yet straightforward fraud verification tool that will help you make better-informed credit decisions.
Benefits of Using FinScore’s Alternative
Data and Fraud Detection Services
Whether you’re a traditional bank, a consumer loan company, or a credit bureau, FinScore’s fraud prevention and detection services can help your company increase approval rate and decrease your default rate. We’ll help you identify high-value legitimate customer segments from false and synthetic identities, income and employment misrepresentation, straw buyers, and other types of fraud – including those with a seemingly legitimate CIC credit report. This means lower losses and higher profitability for your institution.
More than 15 companies in the Philippines trust us for our digital credit scoring and fraud prevention tools. They’re comprised of large consumer banks, digital banks, thrift banks, consumer lenders, and digital lending platforms. You too can counter any damage done by fraudulent loan applications when you partner with FinScore.
Contact us today to learn more about how you can fully reap the benefits of our telco data driven geo-location fraud tools and other solutions. Reach out to us and we’ll schedule a meeting at your most convenient time.
For more information and enquiries about our telco data scoring system, contact us today.