Scienaptic AI and SentiLink enhanced their product partnership to provide credit unions and lenders with artificial intelligence-powered fraud detection capabilities.
The fraud detection tools will be powered by Scienaptic AI’s credit underwriting platform and SentiLink’s identity verification and fraud detection solutions, the companies said in a Monday (Dec. 18) press release.
“The integration of our technologies offers a holistic underwriting approach that harnesses fraud data and AI,” Eric Steinhoff, executive vice president of client impact at Scienaptic AI, said in the release. “This fusion creates highly predictive signals, effectively reducing fraud risk, optimizing decision-making processes and ultimately leading to a rise in approvals for deserving members.”
The tools aim to help credit unions and lenders meet the growing challenge of identity theft and synthetic identity fraud in the digital lending environment, according to the release.
The solutions are designed to intercept fraudulent applications at the point of origin and re-verify the identities of existing members when personal information is changed on an existing account, the release said.
In both cases, the tools aim to preserve the integrity of the lending process while also protecting the experiences of genuine members, per the release.
“This collaboration enables financial institutions to approve more members safely, without introducing unnecessary friction into the onboarding process,” Vivek Ahuja, head of alliances development at SentiLink, said in the release.
PYMNTS Intelligence found that bad actors are growing more sophisticated in their identity fraud techniques, leveraging advanced AI technology to stage attacks on an industrial scale.
Fifty-eight percent of banks said they fear the increased sophistication of fraud, according to “Fraud Takes on a New Identity,” a PYMNTS and DataVisor collaboration.
For financial institutions, preventing identity fraud comes down to effective data utilization, the report found.
SentiLink unveiled a new offering called Facets in September, saying this tool provides feature-specific intelligence derived from the company’s proprietary identity data and its consortium of banks, credit unions and FinTechs.
Complementing SentiLink’s existing scores targeting synthetic fraud and ID theft, Facets provides access to more high-quality data with which financial institutions can more accurately identify cases of fraud, prevent losses and approve genuine customers.
For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.