Fraud in the equipment finance industry is a complex challenge. In the past year alone, fraud incidents in the industry have skyrocketed by 30%. This raises the question – how confident you are in your current fraud prevention strategy?
In the EF Advisor article “Is the Road to Delighting Borrowers Paved by AI?”, Jeannette McNamara, northteq’s Director of Product, highlights the need for lenders to be proactive in their fraud prevention strategy. With the rapid advancement of AI, lenders are now facing a whole new set of challenges. While AI can be utilized for positive purposes, like streamlining operations and enhancing customer service, it also has a dark, disturbing side. Now with readily accessible technology, thieves can create eerily authentic deepfakes that replicate your favorite customers. From synthetic voice phishing to bypassing biometric security measures, lenders face deception on a new level.
Catching fraudulent transactions that can now easily slip by your employees and legacy systems is critical for your portfolio’s health. Unfortunately the industry’s tried and true fraud detection methods don’t seem to be enough anymore.
Fraud prevention tactics
Synthetic identity fraud, where fraudsters create new identities using a mix of real and forged information, is particularly difficult to detect and prevent. Additionally, Real ID fraud poses its own intricate problems.
Transitioning to advanced technologies like behavior biometrics and document analysis is critical for staying ahead of modern fraudsters. These methods, which provide real-time authentication, are becoming indispensable to lenders. By adopting an automated, comprehensive fraud detection strategy, we ensure continuous adaptation to counteract fraud effectively for years to come.
How northteq is fighting equipment finance fraud
Recognizing the multifaceted nature of fraud, we’re building new technology solutions that help you face the challenges unique to equipment finance. Our loan origination system and partner portal now automates checks on borrowers, personal guarantors, and vendors by leveraging collaborations with six 3rd-party services to fortify your defenses. Our blueprint is designed to tackle everything from first-party fraud, where borrowers misrepresent their information, to sophisticated third-party and synthetic identity fraud.
Aurora includes a pre-built suite of tools that help ensure the integrity of every deal, while powering secure and seamless transactions. With the integration of new features, such as real-time biometric recognition, machine learning enhanced document verification, and even a fraud scorecard (like a credit report, but fraud-focused), we’re creating a solution that provides secure, automated transactions.
Looking ahead to our May 20th product release, we’re excited to share more about these essential tools that will help strengthen your fraud prevention strategy. These upgrades will equip our customers with a powerful, intuitive toolset that helps them address the challenges of today’s digital lending environment.
As we countdown to the launch, start thinking about how you can upgrade your fraud prevention strategy. At northteq, we understand the importance of staying ahead in an industry where trust and relationships are the foundation of your business, that’s why we’re focused on delivering solutions that not only meet current needs but anticipate future fraud and security trends.
