Fraud and address manipulation (Part 1)
Identifying an address as incorrect seems simple enough. But in reality, address mismatches between an application and credit bureau data aren’t uncommon. Here are several legitimate reasons why this may occur:
- Change of residence.
- Credit bureau’s unique logic for determining which address is the “best.”
- New/Emerging consumers often have fluctuating address data.
Issuers that employ risk-based approaches allowing incorrect addresses to pass and those that use self-reported data for verification face the highest level of risk for this type of fraud.
Next week, we’ll let you know how you can avoid these types of losses. Or you can get ahead and read our latest paper.