Detecting Fraudulent Loan Applications with AI and Analytics

Experimenting with leading technologies to see behind digital documents.

Project Statement

The client faced a growing threat from liar loans, where applicants or brokers submitted fabricated or altered documents – such as fake payslips or manipulated bank statements – to secure loan approvals. These document alterations were sophisticated and difficult for the human eye to detect, posing a significant risk to the client’s lending process, regulatory compliance, and reputation.

Problem Solution

Together with the client we combined multiple technologies to build an AI-driven fraud detection capability. The solution: 1. Analyzed document composition and integrity to identify suspicious alterations. 2. Verified applicant data against trusted third-party data providers to confirm authenticity. 3. Applied machine learning algorithms to identify red flags, detect anomalies, and spot patterns indicative of fraudulent behavior. This integrated solution offered proactive fraud detection, minimizing manual review efforts and improving detection accuracy.

Value Delivered

This integrated solution offered proactive fraud detection, minimising manual review efforts and improving detection accuracy.

The Outcome
Our solution delivered an industry-first capability that empowered the client to:
✔️ Proactively detect and prevent consumer lending fraud.
✔️ Rebuild trust with the regulator by demonstrating stronger controls.
✔️ Strengthen customer protection, reducing the risk of financial harm.

By leveraging advanced analytics and AI, the client now has a proactive and scalable solution that enhances security, reduces fraud risk, and reinforces their reputation in the market.

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