Investor Review: FRAUD
Combatting Fraud in the Lending Industry LIQUID LOGICS IS WORKING TO PREVENT LENDING FRAUD WITH TECHNOLOGY THAT REDUCES VERIFICATION TIMES AND ENHANCES SECURITY.
ALEX KADDAH
O ne trend that has been at the top of everyone’s mind recently is fraud and, more specifically, fraud protection. How can lenders protect themselves against bad borrowers? How can an individual prove bank statements are real and confirm they are the person they say they are? How can borrower accounts and history be trusted in a time when AI can generate fake statements for all major banks? These questions have been central to industry discourse for the past two years. The idea of employing AI tools to combat fraud seems appealing, but the reality is daunting. Although AI can create false statements, traditional risk assessment tools struggle to detect fraudulent records.
TECH INNOVATIONS TO COMBAT FRAUD This predicament prompts the exploration of different solutions. Ideally, robust underwriting and credit scoring models could help mitigate risks. However, in our privatized business environment, the ability to source quality, trustworthy data from multiple sources remains a formidable challenge. At Liquid Logics, we approach these issues with a unique perspective, leveraging technology to drive innovation and enhance access to capital for both lenders and borrowers. With that being said, we are beyond excited to announce the newest feature within our system, designed to reduce the amount of fraud in lending. Keep in
mind there is never a perfect solution. However, our integration with Plaid through the Liquid Logics NOVA system allows borrowers and lenders to lean on a 100% safe technology system to safeguard their underwriting processes. Plaid allows borrowers to prove their identity, assets, and accounts directly through online banking platforms to prove the borrowing person or entity and their accounts are not fraudulent.
SWIFT AND SECURE VERIFICATION
Taking it one step further, lenders can then enter the system verifying instantaneously the fraud risk has been avoided and see the accounts they are about to do business with. In addition, they can pull asset records of accounts,
32 | think realty magazine :: september - october 2024
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