TransUnion Debuts New Scoring Capability to Combat Fraud

TransUnion has launched new tools to help lenders and retailers fight two growing financial threats: synthetic identity fraud and 'credit washing.' Synthetic fraud happens when criminals create fake identities using a mix of real and fabricated data. Credit washing occurs when consumers falsely claim identity theft to wipe legitimate debts from their records. These new scores are the first to be 'adverse-actionable.' This is a major shift for your financing operations. Usually, if a lender suspects fraud, they might decline a customer without a clear legal reason they can share. These new scores allow lenders to deny applications based specifically on fraud risk while providing the legally required reason codes to the applicant. For retailers, this means smoother approvals for legitimate customers and better protection against chargebacks. As fraud becomes more sophisticated, your lending partners will likely integrate these scores to tighten security without slowing down the point-of-sale experience. Expect to see fewer 'false positives' where good customers are flagged as risks. This technology helps ensure that the people applying for financing in your store or on your site are who they say they are. It also protects the lending ecosystem from losses tied to dishonest credit repair tactics.

Source: PYMNTS

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