Understanding and applying the Detect Authenticity Score

Fraud is an unfortunate reality of all lending businesses and can be costly.

According to a Nasdaq report,  financial services providers in the Americas lost an estimated $151.1 billion in 2023 to fraud scams and bank fraud schemes.

While fraud can negatively affect lenders’ bottom lines, there are ways to mitigate and prevent fraud through technology. Lenders have many factors to consider when reviewing a potential fraud case – from how and why a document has been altered to lenders’ threshold for risk.

Ocrolus’ latest fraud detection enhancement, the Detect Authenticity Score, helps simplify these factors into a single score to help fraud analysts make quicker, more confident decisions.

The Detect Authenticity Score represents a significant step forward in fraud detection. Both easy to use and robust in analytical capabilities, this tool is transforming how financial institutions approach and manage fraud risk.

What is the Detect Authenticity Score?

The Detect Authenticity Score is a game-changing tool from Ocrolus based on fraud signals from Ocrolus’ automated fraud detection technology. This new enhancement provides a singular score, indicating the likelihood that a document is genuine.

The Detect Authenticity Score ranges from 0-100 and weighs the context of what was tampered with and our confidence in the fraud signal. Here’s how the scoring works:

• Very low authenticity (0-29): Indicates a high probability of fraud.
• Low authenticity (30-49): Suggests potential issues requiring scrutiny.
• Medium authenticity (50-79): A moderate range where documents might be legitimate despite some concerns.
• High authenticity (80+): Reflects a strong confidence in the document’s authenticity.

Reason codes are returned to offer transparency into the score and can double as high-level signals that allow for simple logical rules to determine the flow of the document. These codes enhance transparency and assist in setting up rules for document processing, as the score combines complex fraud indicators into an easily digestible metric, streamlining the analysis process.

Balancing advanced technology with user accessibility, the Detect Authenticity Score equips financial institutions with an effective, efficient way of navigating the complexities of fraud detection in today’s financial landscape.

How can lenders apply this in their workflow?

Each lender has their unique approach to managing and mitigating fraud risk and should determine their threshold for risk based on their portfolio and experience. 

As a general guideline, scores below 50 are categorized as low authenticity. However, lenders can tailor this threshold, setting it lower or higher according to their individual needs and historical insights when qualifying borrowers.

The Detect Authenticity Score can be accessed through the Ocrolus Dashboard and via an API connection, fitting seamlessly into various lending workflows. With sortable columns, Detect enables users to streamline their workflow and direct attention to cases of severe fraud (low scores) that should be rejected promptly or authentic documents (high scores) that can be approved with minimal review.

This tailored approach allows lenders to align their fraud detection strategies with unique risk thresholds and enhance operational efficiency. It’s a strategic tool for streamlining the decision-making process, ensuring that resources are concentrated where needed.

Finding a balance between fraud prevention and customer experience

Balancing fraud detection and prevention within the overall customer experience is vital for lenders in all verticals. If lenders require too much information from borrowers to mitigate fraud, they risk losing customers to competitors who offer a smoother experience. On the other hand, requiring too little information can leave lenders exposed to fraud.

This is where the power of automation and AI becomes crucial. Combined, these technologies can detect things like fraud or tampering that might go unnoticed by human reviewers. It meticulously examines the digital details within documents, alerting lenders to any alterations or inconsistencies. Importantly, this is done to maintain a customer-friendly process without creating unnecessary friction in the borrower experience.

Employing AI and automation in this way strikes a critical middle ground, ensuring robust fraud prevention while preserving a positive customer journey – essential factors of retaining a competitive edge and customer trust in the digital age.

Lenders need to stay vigilant in detecting and preventing the ever-present risk of fraud, but they do not need to do this alone. With AI-powered document automation, fraud detection is built into the workflow. With Ocrolus, this process can be simplified even further, giving lenders and fraud analysts a single score to gauge a document’s authenticity.

By embracing these advanced solutions, lenders can effectively protect their operations while keeping their processes smooth and efficient. Tools like the Detect Authenticity Score are invaluable for staying ahead in a constantly evolving financial landscape, helping to ensure the security and trustworthiness of every transaction.

Book your demo to discover how Ocrolus can help your team simplify and improve your fraud detection workflow.

Key takeaways

• Ocrolus’ Detect Authenticity Score simplifies fraud analysis by providing a single score to indicate the likelihood of document authenticity, aiding fraud analysts in making quicker, more confident decisions.
• The Detect Authenticity Score ranges from 0-100, categorizing documents based on the probability of fraud and the context of tampering. Reason codes are also provided for transparency and to aid in setting up document processing rules.
• Lenders can incorporate the Detect Authenticity Score into their existing workflow, customizing the authenticity threshold according to their risk appetite. This tool, accessible through the Ocrolus Dashboard and an API, allows for more streamlined decision-making processes and enhances operational efficiency.