It is estimated that Synthetic Identity Fraud is the fastest- growing type of financial crime in the United States.
Synthetic Identity fraud accounts for more than 20% of loan write-offs from only 2% of consumer loans.
Coalesce.ai is helping financial institutions fight Synthetic Identity Fraud before it starts.
Our AI solution catches more than 80% of Synthetic identify fraud at financial institutions.
WHAT IS SYNTHETIC IDENTITY FRAUD
Fraudsters combine fictitious and real information to create new identities by leveraging the personally identifiable information of vulnerable individuals. Synthetic ID’s behave like legitimate accounts and may not be flagged as suspicious using traditional fraud detection models. This allows fraudsters to cultivate these fake identities, build positive credit histories, and increase their borrowing or spending power before “busting out” – maxing out their credit lines with no intention to repay.
“Bust-Out” Fraud results in 4x higher losses at Banks and Credit Unions
Coalesce’s AI-product has learned to identify more than 80% of Synthetic ID fraudulent loan applications from expert compliance and fraud analysts.
- More effective than rules-based systems. Rules-based systems lack flexibility to identify Synthetic ID’s, resulting in false positives, poor customer experience and unnecessary extra work.
- Seamless Integration. Coalesce integrates directly with loan origination systems to detect Synthetic ID’s before they go through underwriting and ultimately collections.
- Ongoing improvement. Fraud is a constantly changing landscape. Our solution continues to learn and improve as new fraud techniques are developed by Synthetic ID’s fraudsters.
The stakes continue to get higher, and the fraudsters are getting smarter. Fight back with Coalesce.ai.
“Coalesce’s AI detection of fraudulent loans results in a tremendous reduction in losses and a better use of our collection department’s time.”
Fraud detection director of national Credit Union