Clarity Services has released its new Clear Subprime ID Fraud solution designed to prevent mortgage fraud for lenders in the subprime market.
The solution provides reports on identity verification elements and a custom Clarity fraud score to identify both first- and third-party fraud in the online subprime consumer marketplace.
First-party fraud is when a consumer uses his or her own identity to obtain credit with no intent to pay back, while third-party fraud is when someone else is using a stolen or fake identity to fraudulently obtain credit.
Each report developed in the Clear Subprime ID Fraud solution is composed of its own score, reason codes, aggregate data variables and an explanation as to why the information was valued a certain way. Clarity said this level of detail and flexibility was created to allow individual businesses to mix, match and pull reports to meet their specific reporting needs.
Clarity uses its own credit data as well as information from Experian's identity fraud and credit report assets to calculate the identification scores for a lender. The company said its report is not based on any of Experian's current scoring models.
“The clear subprime ID fraud solution and clarity fraud score can make a real impact to a lender's current underwriting model,” said Mike Cook, executive vice president of Clarity Services, Clearwater, Fla. “The new custom clarity fraud score significantly outperforms anything else we have measured.”
By using this product, Clarity said lenders could decline and accept consumers based on the returned score and data.
The custom score and report address a variety of challenges faced in the subprime industry, such as being able to detect if consumers are most likely to use their own identity to commit fraud in the application process, identify the correct Social Security number for a consumer, determine if an incorrect SSN on an application are inputted because of data entry error or a fraudulent attempt to conceal an identity.
The report also categorizes different fraud types to aid in the manual review process and identifies if a consumer is using multiple SSNs, cell phones, addresses, emails and employer phone numbers associated with a specific bank account. In the report, a consumer can see the top three reasons for their score.
“With unique fraud detectors and predictive validation flags, Clear Subprime ID Fraud is a lender's decision-making solution for confidently separating the good from the bad and the potentially ugly,” Clarity Services said.
