Product

Credit Abuse Risk

Credit Abuse Risk is a proprietary, machine-learning product designed to detect and mitigate first-party credit abuse fraud. It utilizes gradient-boosting methodology, leveraging unique insights from FCRA-regulated data.
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Detect Potential Credit Abuse at Account Origination

Credit Abuse Risk is designed to help organizations identify consumers most likely to misuse credit before losses occur. Credit Abuse Risk targets first-party fraud where the legitimate account holders misrepresent information or exploit credit for personal gain.

Using an explainable  FCRA-compliant score with reason codes, Credit Abuse Risk supports compliant decisioning and adverse action requirements. By analyzing patterns linked to loan stacking, credit washing, piggybacking, bust-out behavior, income misrepresentation, and boosted trades, Credit Abuse Risk enables lenders to better identify potential threats to the health of their portfolios and take action before losses occur.

Protect the Bottom Line
According to Equifax analysis, first-party fraud costs lenders and vendors nearly $6 billion annually.
Enable Safe Portfolio Growth
Lenders can confidently expand approvals and unlock new opportunities without increasing their overall fraud risk profile.
Flexible Delivery Customized to Meet Your Needs
Immediate decisioning at time of application via real-time APIs or periodic portfolio reviews through batch processing.

FCRA-Regulated Data is a Difference Maker

The use of FCRA-regulated data and the provision of clear reason codes support informed, risk-based decisions while facilitating required adverse action notices and meeting regulator expectations for proactive fraud controls. Credit Abuse Risk is fully FCRA-compliant, providing a defensible score and reason codes that can be used to confidently support adverse action decisions on new applications.

How Credit Abuse Risk Works

Credit Abuse Risk provides a powerful, specialized layer of defense that works alongside existing risk frameworks. It is designed to capture specific indicators of potential fraud that are distinct from general creditworthiness, allowing for a more comprehensive view of an applicant.

Protect Profitability and Reduce Loss

By identifying high-risk, early-default behavior at the point of account opening, Credit Abuse Risk helps stop losses before they hit charge-off status to protect margins and ensure that unrecoverable losses do not compromise portfolio health.

Frequently Asked Questions

First-party fraud occurs when a customer intentionally misrepresents information or abuses credit for personal gain.

First-party fraud involves real consumers who use their personal information to defraud. Identity theft typically involves a third party using stolen credentials. 

Depending on the consumer’s history, they are likely to appear as a legitimate customer to do business with at the time of application. Fraud is often only discovered after they’ve perpetuated a scheme such as an early payment default. 

Common signals of credit abuse include any of the following loan stacking, credit washing, piggybacking, bust-out behavior, income misrepresentation, and boosted trades.

Any organization extending credit or lending monies should consider Credit Abuse Risk to mitigate losses associated with first-party fraud. It can be used at application, within portfolio monitoring, and across the account lifecycle to identify risk before losses occur.

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