Fraudsters continue to hit large digital lenders hardest, causing escalating fraud costs and difficulties, according…
Fraudsters continue to hit large digital lenders hardest, causing escalating fraud costs and difficulties, according to a new study from LexisNexis Risk Solutions. Of course, we all pay these costs.
The 2018 study, which surveyed 186 risk and fraud executives at various lending institutions, including mortgage companies, auto lenders, non-bank personal loan issuers, non-bank credit card issuers and finance companies, highlights the continued rise of fraud costs for U.S. lenders.
According to the LexisNexis Fraud Multiplier, for every dollar of fraud, lenders incur $3.05 in costs, compared to $2.82 in 2017, an 8.1 percent increase.
Larger digital lenders, with at least $50 million in annual revenue, are hit hardest by fraud, incurring $3.37 in costs, which is up from $3.07 in 2017.
If you’re a credit union member you have an even bigger stake in the fight against fraud. After all, you’re a part owner of the CU. But every consumer, every borrower ultimately pays the cost of fraud.