TransUnion has launched new scoring capabilities, specifically Credit Washing and Synthetic Fraud Scores, designed to help lenders identify financial threats. These tools allow institutions to provide consumers with specific reason codes when credit applications are denied, a feature previously unavailable in the market.
The company reports that synthetic identity fraud and credit washing are among the fastest-growing financial crimes. As of June, total lender exposure to synthetic identity fraud reached $2,4 billion. These schemes often involve merging stolen data with falsified information or removing legitimate negative history from credit files.
By integrating advanced fraud intelligence into decision-making processes governed by the Fair Credit Reporting Act, TransUnion aims to help organizations detect risks that bypass traditional methods. The new scores utilize the company's existing data assets and analytics to mitigate potential financial losses for lenders.
