According to WPI, loan fraud is set to cause 45€ billion in losses by 2023!¹ As the phenomenon accelerates with the digitization of financial services, "traditional" approaches are no longer sufficient to effectively counteract fraud.  

The opportunity to earn a quick buck with fraudulent activities is opening up avenues for organized crime, including money laundering that can be related to terrorist financing. Consequently, failure to identify fraud threatens the global economy, countries, and all citizens. Both businesses and governments alike are facing challenges in identifying fraud in such an environment. With fraudsters acting fast, institutions must keep pace.    

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Better fight against fraud and adapt to its evolution with AI  

Compared to simple rules, ML-based solutions generate 10 to 20 times fewer false positives and achieve relevance rates of up to 40%, with no additional staff required.² ML models can use an unlimited amount of data, cross-reference, and calculate the relative influence of various variables with unprecedented accuracy, relevance, and speed. To curb fraud, lenders must have systems in place to monitor the behavior of all merchants and the applications those lenders submit. Bleckwen provides the support needed to help lenders stop merchant fraud.    

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Fraud expertise and insights into your business needs  

• Behavioral analysis: lenders each create their standardized practice to accept or reject loan applications. With Bleckwen, lenders receive a complementary fraud score for every application;
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• Machine learning: our models learn from marked historical data by seeing both fraudulent and genuine loan applications. Therefore, the model can predict whether the loan request has a fraudulent nature. Our fraud expertise not only allows us to detect existing fraud, but we also can predict new fraud vectors. When our systems detect more fraud across a wider range of attack vectors, it helps us better protect our customers, and therefore your customers;
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• Anti-fraud consortium: lending institutions are trying to find solutions on their own to combat fraud. As fraud evolves, the lending industry no longer relies solely on the methods of the past. It is necessary to create ways to share and learn together about fraud. By the end of 2021, requests were made to CNIL and ACPR, according to an ASF report.

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The fight against fraud: a never-ending challenge

The future of the fight against fraud lies in specialized AI and ML solutions, with a deep understanding of the banking business and the fraudsters' strategies. Solutions that understand your business and industry, limit your risks, and maximize your ROI. Companies that are already familiar with AI/ML and are accompanied by partners able to help them anticipate and integrate the new rules will undoubtedly be the best positioned to adapt to market evolutions

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‍References

• ‍Get rid of the residual credit fraud headache and optimise your turnover – Bleckwen ‍
• Consumer credit: Carrefour Banque reduces its residual risk by 50% with Bleckwen credit fraud services - Bleckwen

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