How to Unmask a Fraud Ring

Clarity’s fraud team exercises round-the-clock vigilance by utilizing the subprime credit industry’s largest database. Below are the details of one example of how Clarity works with clients for industry-leading security against fraud.
Fraud Ring Moniker: Excel Vision Capital

Modus Operandi: Listing “Excel,” “Vision” or “Capital” as employers on applications, among other red flags

Clarity Fraud Team Member: Bruno Gomes, Certified Fraud Examiner, 14 years of experience

The Win: Proactive information sharing and

Read More

  • Permalink Gallery

    Lending Risks in Today’s Alternative Financial Services Market

Lending Risks in Today’s Alternative Financial Services Market

The Subprime Population is Broad and Diverse

Given the variability of the subprime consumer population, individuals seeking alternative financial services each carry their own unique history. But accessing a more complete view can be a challenge.
In this piece, we explore some of the challenges lenders encounter while looking to expand their consumer universe:

Concerns for mass migration online
Risks worth taking (and avoiding)
How to unmask a

Read More

The Evolution of Credit-Risk Evaluation

The Evolution of How Lenders View Credit-Risk Evaluation

These days, the predictive nature of the best data available in approving loans can have an immediate impact on a lender’s business. The underwriting process has changed quite a bit throughout the past decade. The better lenders understand why that is, the more you might grasp what moves to make today for a better tomorrow.
In our latest spotlight on credit-risk evaluation,

Read More

How to Think About First-Party Fraud

First-party fraud may feature multiple forms of deception which vary in sophistication, but it often begins with a basic premise – with applicants who simply present themselves as the borrower. They use their own identity, or parts of their identity, with the intent to defraud for financial gain. In some cases, a first-party fraudster will use bits of information identifying their next of kin when applying for credit.

Also known

Read More

How Lenders Can Navigate Risk in the ‘Big Fraud’ Era

Fraud and Credit Risk
While fraud and credit risk are two distinct factors that can be intellectually distinguished with ease, measuring the difference in practice can be tricky. That’s due, in part, to the fact that both have overlapping risk in common.

When a loan reaches first payment default, at what point does a lender determine that the consumer has no intent to pay? Determining intent from risk isn’t easy,

Read More

Figting Fraud Is Easier With Clarity

Credit fraud comes in many forms to threaten your business in multiple ways, from loan stacking to synthetic fraud. Effectively fighting fraud requires a comprehensive approach – and a proven partner – to help you eliminate blind spots that can erode your bottom line.

How Clarity Fights Fraud:

Alert lenders when a consumer is approved for a loan.
Immediately flag a consumer’s credit report with a temporary account to

Read More

Current Fraud Trends Q3 2016: Multiple Stolen Cards for Payoffs on Single-Payment Loans

Clarity’s fraud team has seen an increase in reports of fraudsters using multiple stolen credit/debit cards to pay off sequences of single-payment loans for the same identity. We have seen cases in which more than five different stolen cards have been used this way.

The fraudsters have hit multiple lenders with this scheme, which provides a higher return than using stolen cards to buy liquid merchandise such as laptops or

Read More