Case Study: Large Bank reduces deposit account fraud with TransUnion custom fraud scoring

Custom Fraud Model Changes the Way Large Bank Screens for Deposit Account Fraud

Large Bank was losing $1–2 million each month to deposit account fraud across branch, online, and phone channels, with online and phone applications driving a disproportionate share of losses. Its existing fraud detection approach relied on manual review of suspicious applications, which was slow, missed many fraudulent accounts, and created too many false positives for legitimate customers. Large Bank turned to TransUnion and its custom fraud modeling capabilities to improve deposit account screening.

TransUnion built channel-specific custom fraud scores in just days, using the bank’s data to identify applications most likely to result in fraud loss. The model helped Large Bank identify 11.5% of all fraud in the lowest-scoring 1.8% of applications, representing about $4.1 million in annual fraud losses. During implementation, 93% of low-score records reviewed were confirmed as likely fraudulent, showing that TransUnion’s solution significantly improved fraud detection and allowed the bank to focus manual reviews more effectively.