Fraudsters are constantly advancing their tactics to challenge the integrity of an entire equipment finance industry. With an increase of over 10% in recent years, it’s impacted financial operations across small, medium, and large lenders equally. The types of fraud range from identity theft to the fraudulent use of legitimate credentials, first-party fraud by company owners, impersonation, and the creation of fake invoices.
Utilizing a suite of integration tools and software within our Aurora platform, Northteq is continuing to develop ways to safeguard lenders against the pervasive risks of fraud. Here’s how Northteq is tackling four major types of fraud, and how our upcoming product release will further enhance these capabilities:
1. Identity Theft, Including Synthetic Identities
Synthetic identities, meticulously constructed from stolen information, pose a significant threat. Real-time biometric recognition and machine learning-enhanced document verification systems are critical in detecting discrepancies and preventing fraudulent activities that can otherwise go unnoticed until it’s too late. Northteq has partnered with Plaid to incorporate automated identity verification to the workflows within Aurora.
2. Preventing First-party Application Fraud
Application fraud is the submission of falsified financial information or tampered documents. Northteq utilizes powerful analytical tools like Ocrolus to extract and scrutinize cash flow data from bank statements, detecting any signs of tampering or misrepresentation.
Our Aurora platform includes a sophisticated fraud scorecard that assesses risk in real-time, enabling lenders to make informed decisions and quickly reject fraudulent applications, maintaining a secure and smooth transaction process.Technologies like encrypted digital verification and advanced document analysis work to ensure that all financial documents and invoices are legitimate and traceable. This comprehensive approach significantly reduces the risk of fraud, safeguarding the integrity of financial transactions and maintaining the trust that is essential to healthy borrower-lender relationships.
3. Transaction Fraud
Transaction fraud can often slip through without detection until it’s too late. Fraudsters are becoming more sophisticated, impersonating legitimate customers to conduct unauthorized transactions. Aurora’s Fraud360 dashboard automatically monitors transaction patterns, supported by behavioral analytics, and helps identify anomalies in borrower behavior that are indicative of fraud. This system adapts to new tactics by fraudsters, ensuring lenders are equipped with the latest defenses.
4. Tackling Asset Misappropriation and Third Party/Internal Fraud
Asset misappropriation and fraud committed by insiders or through third-party interactions can be devastating. Northteq has established strategic partnerships with technology providers like Walters Kluwer for UCC monitoring, and Plaid for advanced biometric and ID verification. These integrations, along with encrypted digital verification technologies such as DocuSign, secure assets and ensure that only authorized individuals have access to sensitive financial transactions, significantly reducing the risk of internal and third-party fraud.
Upcoming Aurora Updates
As we approach our May 20th product release, we invite you to prepare for an upgrade to your fraud prevention strategy with Northteq. We’re introducing enhanced fraud prevention features, including two brand new products: Fraud360 and Aurora Syndicate. These tools will provide you with an even more comprehensive and intuitive approach to fraud prevention and syndication, giving you the power to monitor, analyze, and react to threats across various channels and partnerships—all in real time, across multiple channels and partners.
Partner with Northteq for a comprehensive solution that ensures deal integrity and facilitates seamless, secure transactions.
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