New Fraud Risk Mitigation Tool Launched

Digital Risk, a risk mitigation company providing tools designed to limit financial services firms’ exposure to fraud, has introduced "Risk IQ," a verification product that provides a "360-degree" risk assessment of mortgage transactions.The vendor, which introduced the product at the Mortgage Bankers Association's National Fraud Issues Conference in Chicago, said it is forging new ground in cost per transaction savings with the product. "This newer technology means better due diligence and a more cost-effective means for achieving it," said Jeffrey Taylor, CEO, Digital Risk. Risk IQ uses data sourcing and reporting operations capable of decreasing operational time by an average of 20% and is highly customizable, according to Mr. Taylor. "The black-box, one-size-fits-all model of the past simply cannot produce the results required to keep mortgage companies competitive in today’s marketplace," he said. "Some lender losses today are the result of using fraud prevention tools invented five years ago and not capable of fighting today’s sophisticated fraud," said Mr. Taylor. Peter Kassabov, president of Digital Risk added, "It’s a different market today, full of repurchase requests that are putting some companies out of business and others into court."