Clarity Services, Inc. is proud to announce its newest tool in the fight against fraud, Fraud Signature Indicators. Based on findings from Clarity’s fraud team, Fraud Signature Indicators identify loan applications that have the characteristics or “signature” of a known fraud perpetrator. Unlike traditional rules and models, these signatures are targeted to specific fraud patterns and behaviors, and are flexible enough to account for changes in the fraudster’s behavior, yet specific enough to minimize or eliminate false positives.
The indicators, which will be an addition to Clarity’s Clear Fraud™ report, will alert lenders if a current inquiry matches the method of operation of known fraudsters or fraud rings. The indicators also provide a method for tracking the fraudster’s activity. With Clarity identifying activity patterns, lenders can quickly take action to counter fraud and stop it before it gains traction.
“Even lenders with the best fraud teams are limited by the fact that they only have visibility to their own traffic, and by the time they see a fraud pattern, multiple loans may have already been made,” said Chris Montouri, fraud director at Clarity Services. “We are leveraging our extensive industry coverage to identify fraud patterns much faster and deeper than an individual lender can.”
Fraud Signature Indicators separate the fraud risk from the credit risk with a high degree of accuracy early in the underwriting process. Using Fraud Signature Indicators, lenders can eliminate applicants that have a 100 percent chance of fraud-based default, allowing lenders to shift their focus to making better credit decisions on the remaining pool of applicants.
“Lenders should see Fraud Signature Indicators as a valuable opportunity to extend their current fraud efforts and increase profitability,” said Lyndi Mulder, director of product management at Clarity Services. “Fraud Signature Indicators will help catch more fraud on the front-end in a relatively shorter period of time.”
Clients that use Clarity’s Clear Fraud™ product will receive Fraud Signature Indicators at no additional charge. Fraud Signature Indicators are available now. Contact us to learn more.