Financing Departments
Reduce fraud & ensure regulatory compliance when issuing credit
Common fraud issues:
Fake/Stolen Identities (i.e., fake driver licenses)
According to a 2024 study released by Javelin Strategy, Account Login Fraud (AKA - "account takeover" or "ATO") has overtaken new account opening fraud as the leading cause of fraud losses.
Fraud is a global problem that costs more than $221 billion annually worldwide. In the U.S. alone, financial fraud continues to grow in both scale and sophistication, targeting vulnerabilities across industries that issue credit to consumers. The retail credit industry, which includes any business that offers credit to their customers, such as auto dealers, casinos and department stores, buy-now-pay-later services, and other businesses offering in-house financing or deferred payment options— finds it increasingly vital to utilize credit fraud prevention as criminals continue to become more creative and efficient in their use of digital technology to commit fraud in an effort to secure an unfair or unlawful gain.
Criminals today use advanced digital tools, synthetic identities, and stolen personal information to bypass outdated fraud controls and gain unauthorized access to credit lines or financial services. Without a strong identity verification strategy in place, finance departments are often left exposed to identity theft, loan stacking, account takeovers, and other costly fraud schemes that result in direct financial loss, compliance violations, reputational damage, and increased administrative burden.
Optimize Regulatory Compliance when Issuing Credit
Because finance companies issue credit, they must comply with complex regulatory requirements to validate with whom they conduct such credit transactions by immediately verifying the authenticity of the ID being presented. Examples of regulations include the Fair Credit Act, the “Red Flag Rule”, mandates associated with the Free and Accurate Credit Trade Act, and the Customer Identification Program provisions of the Bank Secrecy Act. These combined legislative directives stipulate that issuers of credit must proactively involve themselves in the fight against identity theft by creating procedures, documented with step–by–step instructions, for how to validate ID documents of any individual applying for and being issued credit, and to maintain records.
Finance departments are on the front lines of credit fraud exposure. They are tasked with evaluating creditworthiness, managing financial risk, and protecting both the company and its customers from bad actors.
Common fraud scenarios faced by finance professionals include:
- Synthetic identity fraud: Fraudsters create fake identities using a mix of real and fabricated information to open new credit lines.
- Account takeovers: Criminals gain unauthorized access to legitimate customer accounts to initiate fraudulent transactions.
- First-party fraud: Individuals apply for credit with no intention of repaying, often using manipulated or borrowed identity credentials.
- Check and payment fraud: Counterfeit cashier’s checks, forged money orders, or spoofed payment methods lead to uncollected debt.
- Loan stacking: Fraudsters apply for multiple loans at once across various lenders before their fraud is detected.
Without modern fraud detection tools and ID verification procedures, finance departments may not recognize these schemes until after financial loss has occurred.
How FraudFighter Helps Prevent Credit Fraud
FraudFighter™ enables finance departments to immediately verify the authenticity of identification documents to stop fraud before it occurs. Our multi-layer credit fraud prevention program is designed to empower your front-line employees with the tools they need to detect counterfeit, altered, or stolen IDs—whether presented in person or submitted digitally.
These proven solutions for fraud prevention are easy to implement, inexpensive to operate, and highly effective. Our ID authentication systems can be deployed at loan desks, customer service counters, or anywhere credit decisions are made. By validating identity in real time, our tools act as both a fraud filter and a visual deterrent to those attempting deception.
Available at a wide range of price points, our identity verification solutions start at around $30 for basic tools and scale up to more advanced systems designed for high-volume or high-risk environments. Whether you need simple in-branch ID checks or robust, automated authentication for digital channels, these tools deliver a strong return on investment by helping eliminate losses tied to fraudulent credit activity and ensuring compliance with regulatory requirements. Each solution also supports audit-ready documentation, giving your institution the confidence to stay compliant while protecting your bottom line.
New Account & Account Takeover Fraud Is On The Rise - Are You Safe?
The world of fraud keeps rapidly evolving and we've been working hard to stay one step ahead. We can protect your business from modern fraud, even new account and account takeover fraud.