IDfy, India’s leading Integrated Identity platform, has released a report on 'KYC Risks in Lending' that shows patterns of fraudulent behaviour during onboarding procedures, after carefully analysing 80 million data points.
The report highlights that 1 out of every 14 loan applicants attempted to deceive KYC checks and fraud detection systems. Out of all the IDs accepted during loan applications, the
Voter ID
has shown to be forged the most with a 6.78% fraud rate, followed by PAN cards at 3.84%, and Aadhaar cards at 3.11%.
The report also highlights that 39% of loan applicants have a mismatch between the name and the ID submitted and 7.6% of borrowers submit photos that fail IDfy’s liveness check. This problem of document tampering and fraud is also claimed to be widely prevalent in the employment and merchant onboarding space. IDfy claims that it conducted field investigations that revealed that a fake employment certificate with complete stubs and tax documents can be produced for as little as Rs 20,000. This has helped 14% of loan applicants to lie about their employment status through fake documentation. The report also uncovers that collection emails never reach up to 18% of loan applicants who often utilise disposable email IDs.
English (US) ·