Point Predictive BorrowerCheck 3.0 combats fraud and identity theft

Point Predictive launched its newest solution, BorrowerCheck 3.0. Available via API or web browser, BorrowerCheck 3.0 addresses the problem of fraud and identity theft in a more comprehensive way than existing identity solutions to help stop the billions in fraud losses that slip through controls today.

With BorrowerCheck 3.0, customers receive:

  • A fraud score that precisely identifies the level of risk of identity theft, synthetic identity, income fabrication, fake employer use, and first-party fraud.
  • Validated Red Flag alerts for each fraud type that can be used to target stipulation and manual review strategies based on the type of risk that is present.
  • One Time Passcode (OTP) Phone Identity Validation
  • OFAC checks
  • Comprehensive Dashboard reporting
  • Geo Address Survey Questionnaires for enhanced verification

The solution’s new features include a brand new way to enhance the validation of a borrower’s identity when red flags are present. Currently, many companies will use a knowledge-based authentication (KBA) survey, which includes questions generally generated from public information (that can be accessed by fraudsters) that legitimate consumers have a hard time answering.

Data reveals that up to 92% of fraudsters can successfully pass knowledge-based question tests compared to 46% of legitimate customers.

“From our experience, fraud is slipping through the cracks because companies approach the fraud problem too narrowly since most existing solutions have one purpose: alerting potential identity fraud,” says Tim Grace, CEO of Point Predictive. “Fraud perpetrators are not only using stolen or synthetic identities, but they are also using fabricated income with forged paystubs, fake employers, and phone numbers that don’t belong to the real consumer. With BorrowerCheck 3.0, we address all these risks in a single, cost-effective solution.”

The solution leverages the power of Point Predictive’s unequaled proprietary risk data elements – data points that are not available on any other data source, including the credit bureaus. Additionally, the solution leverages select and key data points from public records and phone ownership.

Point Predictive can perform a more comprehensive identity and fraud assessment by incorporating four comprehensive checks into a single transaction – Identity Validation, Income Validation, Employment Validation, and Phone Validation. The result is a solution that can detect a majority of the fraud that lenders, dealers, and financial institutions are missing today with lower false positives and less customer friction.

“With BorrowerCheck 3.0, we are introducing a replacement to time-consuming KBA surveys that many legitimate borrowers fail, and most fraudsters can pass”, said Frank McKenna, Chief Fraud Strategist of Point Predictive.

“We’re using Phone-Based Authentication instead. Once we verify the borrower does own the phone, we can send a one-time passcode to that borrower to make sure that they are in possession of the phone they own. If the borrower can provide the passcode, we know that identity theft is far less likely. This process saves an average of 5 minutes of customers’ time and is exponentially harder for an identity thief to fake. The result is legitimate customers pass through the checks in seconds, while fraudsters can get detected before the loan is approved,” concluded McKenna.

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