loan fraud detection

Real-time authentication to accelerate genuine loans and prevent fraud

Online lenders use ThreatMetrix® to identify cybercriminals early before they have a chance to submit fraudulent loan applications.

Fast and easy online loans attract borrowers, consumers, and cybercriminals. Fraudsters look to exploit short transaction cycles, an abundance of breached data and the anonymity afforded them by the Internet.

ThreatMetrix uses real-time, behavior-based fraud protection to help stop loan fraud at the front door. This mitigates fraud risk at web speed, accelerates approvals and reduces manual reviews.

With thousands of large-scale data breaches in recent years, cybercriminals have stitched together complete identities from information bought on the dark web. This has rendered many static identity assessment methods, such as user ID and password, ineffective for online authentication.

Real-time analysis of dynamic information, such as device, location, behavior and threats, gives online lenders and payment providers a powerful tool to fight loan fraud without impeding legitimate customers.


Relying on static PII attributes alone would result in millions of losses. Static identity attributes are only useful when paired with dynamic user information so you can look for linkages and patterns. This makes the ThreatMetrix solution a significant component of our fraud model.

— Head of Fraud, Online Lender

Fraudsters use stolen information for account registration. This compromises the verification process. Background, identity and credit checks are usually cleared because these are processed against legitimate identities that have been stolen.

By filtering out fraudulent applications earlier in the process, lenders and payment providers reduce dependence and costs associated with verifications and manual reviews. This accelerates processing of legitimate transactions and avoids spending valuable resources reviewing fraudulent applications.


Using ThreatMetrix, we can clearly see the spider web of linked, fraudulent accounts. We’ve almost got a 100-percent hit rate on known negative devices.

— Jim Winters, Director of Financial Crime, Fraud & Underwriting, TSB

Online lenders offer quick processing times and often cater to underbanked and unbanked clientele. To attract new customers, it’s important to ensure that fraud and security controls do not deter legitimate customers with overly aggressive or intrusive fraud controls.

With ThreatMetrix, lenders instantly authenticate new loan applications with up to 95-percent accuracy without adding additional friction to the loan application process.


ThreatMetrix allowed us to have bespoke, risk-based authentication that is ahead of the curve. We continue to improve the online experience for valued customers while removing unnecessary friction.

— Evgeny Vinogradov, Head of Data Warehousing & Analytics, Yandex.Money

Online lending can offer fraudsters a lucrative business in the form of loans they don’t intend to repay. To do this, cybercriminals use stolen credentials and cloaking technologies, such as proxies or spoofed locations, to mask their true identities and whereabouts.

ThreatMetrix analyzes transactions from several of the largest lenders across the globe and enables them to avoid Bustout or Stacking Fraud where fraudsters use loans from one lender to pay another.


ThreatMetrix has some of the biggest banks and payments providers in the world feeding into its Network, and we can leverage that. It makes us feel protected.

— Paul Abbey, CRO, MoneyPlace

Cybercriminals gain unauthorized account access using credentials obtained through phishing attacks, compromised devices, malicious personas, shared passwords, keyword loggers and other tricks. They know that it’s often easier to trick unsuspecting people than it is to exploit some technology loophole.

ThreatMetrix looks beyond user IDs and passwords to forensically analyze account access requests. We do this in real time to identify suspicious patterns, compromised devices, unusual locations (including attempts from known botnets or hidden proxies and VPNs) and other anomalies.


ThreatMetrix was the partner we were looking for. Not only does it have robust fraud prevention capabilities but it delivered these to us in such a way that we were able to integrate data in our own risk engine and machine learning models.

Case Study: WePay Online Payment Solutions

Lenders want to deliver valued customers an elegant online experience. At the same time, the faster they get cybercriminals off their websites, the better. To do this, they need to clearly differentiate trusted users while blocking fraudsters in real time.

Companies across the globe use ThreatMetrix to transparently and instantly analyze millions of transactions each day, authenticating guests using the largest anonymized database of trusted digital identities in the world.


ThreatMetrix provided immediate peace of mind. We also knew that the tool is continuously evolving to mitigate against new types of fraud.

— Kathryn Petralia, COO, Kabbage

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