The statistics are undeniable – equipment finance fraud is on the rise, with a 10% year-over-year increase reported in 2023. It’s clear that the old ways of verifying identities and preventing fraud are no longer enough. Traditional methods struggle to keep pace with next-gen tactics like social engineering and impersonation fraud, which has seen a 13% YoY rise.
Manual review processes, while important, can be a bottleneck. Here are 4 strategies to streamline your equipment finance fraud review process and gain a competitive edge.
1) Optimize your resources
Many lenders rely on outdated systems or manual, work-intensive processes for fraud reviews. This can be inefficient and costly. Here’s a two-pronged approach:
- Invest in your team – Regularly train your fraud review team on the latest fraud tactics and best practices. This equips them to identify red flags and make informed decisions, maximizing their efficiency.
- Evaluate cost – Consider the true cost of manual reviews. Factor in personnel time, overhead, and potential lost business from delayed approvals. Compare this cost to the potential losses from fraud. There might be a better way. Investing in streamlined processes and technology can be a wise decision that strengthens your bottom line.
2) Leverage automation
With 33% of risk leaders actively seeking new fraud solutions, it’s clear the industry is moving towards automation. Consider automating any manual fraud reviews. Integrate services that automate KYB/KYC, identity verification, and document authentication.
AI and machine learning (ML) powered tools can analyze massive amounts of real-time data in seconds, freeing your team to focus on complex cases. The expected tripling of AI and ML use in anti-fraud tools over the next two years is a perfect indicator to highlight their effectiveness and show where the fraud prevention industry is headed.
3) Review your current tech stack for gaps
Many lenders juggle multiple fraud prevention solutions from different technology vendors leading to:
- Fragmented data – Information gets siloed, making it difficult to get a holistic overview of the borrower and their business.
- Integration headaches – Managing relationships with your technology vendors, implementing new systems, and dealing with multiple system updates is an unneeded hassle for your team.
- Poor UX – Jumping between different systems and learning how each one works can be difficult and time-consuming for your team.
4) Consolidate your solutions
42% of risk leaders manage multiple anti-fraud vendors and systems data. Managing diverse systems, updates, and contracts is a nightmare. Instead of dealing with multiple solutions, consider consolidating all your fraud prevention solutions into one. This simplifies your workflow, reduces administrative burdens, and improves the user experience for your employees, vendors, and borrowers.
Ready to streamline your fraud review process?
Aurora Fraud360 is a comprehensive fraud prevention solution designed specifically for the equipment finance industry. Our AI-powered platform automates fraud reviews and consolidates 3rd party integrations from leading providers like Plaid, Ocrolus, and Ekata.
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