Case Study: Leading Financial Institution detects synthetic fraud early with TransUnion TruValidate Synthetic Fraud Model

Financial Institution Identifies Instances of Fraud Before They Impact Earnings With TransUnion TruValidate Synthetic Fraud Model

Leading Financial Institution, an online lender serving near-prime and above-risk consumers, was seeing losses from loans and credit card accounts that charged off despite passing standard fraud and identity checks. The institution suspected synthetic fraud and a possible fraud ring, so it turned to TransUnion and its TruValidate Synthetic Fraud Model, along with investigative tools like TLOxp, to uncover hidden risk patterns.

TransUnion analyzed a sample of accounts and found that 80% of the examples scored high for fraud risk, revealing signs of synthetic identities such as shared addresses, mismatched SSNs, and suspicious authorized-user activity. Leading Financial Institution then implemented TransUnion TruValidate Synthetic Fraud Model across all credit reports, enabling fraud detection at application time instead of after booking; it also began requesting extra verification for suspicious cases, helping deter fraudsters while protecting legitimate customers and reducing losses.