How to address the 6 most common types of fraud in loan applications

Fraud in loan applications poses a significant challenge to lenders, impacting both their operational efficiency and financial stability. According to a LexisNexis study, fraud costs have risen for U.S. and Canadian financial service firms – up 19.6% to 22.4% compared to 2020 – with banks reporting the highest average of $4.36 for every $1 of fraud loss.

Legacy methods for detecting fraud, often reliant on manual verification and traditional risk assessment methods, are proving to be inadequate in the face of evolving fraud techniques.

To proactively mitigate risk and combat fraud, lending institutions are increasingly adopting advanced technologies like machine learning and artificial intelligence. Learn how to address the 6 most common types of fraud in load applications in our whitepaper.