• Data, analytics, and technology company Equifax unveiled Credit Abuse Risk, a new solution to help lenders fight first-party fraud.
• The new offering leverages machine learning to identify common first-party fraud tactics such as credit washing and loan stacking.
• News of Equifax’s Credit Abuse Risk predictive model comes on the heels of the launch of the company’s Synthetic Identity Risk tool. The solution empowers institutions to identify when fraudsters are using fake identities to set up credit accounts and obtain loans.

A new offering from international data, analytics, and technology company Equifax will help protect lenders from first-party fraud. Credit Abuse Risk is a new predictive model that leverages FCRA-regulated data to spot fraud tactics such as credit washing and loan stacking. The model will help lenders make more confident lending decisions.

“By focusing on application behavior in real time, Credit Abuse Risk quickly helps to reduce the potential for fraud and related costs,” Equifax Chief Product Officer for US Information Solutions Felipe Castillo said. “This supports a more confident lending environment and helps keep credit available for consumers.”

In a world of phishing and deepfakes, first-party fraud is a type of financial crime that often goes overlooked in conversations about fraud prevention. First-party fraud, unlike third-party fraud, involves fraud committed by the actual customer or account holder rather than by an external party impersonating someone else. Credit Abuse Risk is designed to detect two specific forms of first-party fraud: loan stacking, in which an individual applies for multiple loans in a short period of time with no intention of repaying the debt, and credit washing, in which an individual attempts to remove accurate but negative information from their credit report. Credit Abuse Risk identifies the behaviors associated with these types of fraud during prequalification, account origination, or portfolio review, enabling lenders to adjust loan terms based on FCRA-compliant insights.

Powered by machine learning, Credit Abuse Risk offers enhanced insights derived from behavioral indicators that detect atypical credit activity, and provides targeted decisioning that addresses the lifecycle of fraud. Credit Abuse Risk features comprehensive portfolio protection covering all credit tiers and actionable intelligence that empowers lenders to make real-time, regulated decisions on credit terms. This includes FCRA-compliant scoring with adverse action reason codes to ensure transparency in the event of application denials, restrictive credit term modifications, and related actions.

Credit Abuse Risk is part of Equifax’s suite of fraud solutions and works alongside the company’s Synthetic Identity Risk tools. Introduced earlier this month, Equifax’s Synthetic Identity Risk uses machine learning algorithms to detect fraud patterns—such as those related to synthetic identity fraud—that are often difficult to spot using traditional methods. Synthetic identity fraud occurs when a fraudster combines aspects of a real identity with fake data to create a new, fictitious identity. The fraudster then uses these fictitious identities to open credit accounts and secure loans on which they eventually stop making payments. The fact that these synthetic identities often include real data and appear in mostly legitimate means that these frauds can be difficult to detect and can persist for long periods of time. Equifax estimates that charge-offs per known synthetic identity cost companies on average $13,000.

“Synthetic identity fraud is a rapidly growing threat impacting the consumer lending ecosystem,” Castillo said. “With Synthetic Identity Risk, Equifax strengthens lenders’ fraud defenses, helping them to uncover hidden risks and ultimately shift from reactive loss recovery to proactive prevention. In doing so, they not only reduce their financial losses but they (also) safeguard and build long-term trust with their legitimate customers.”

Headquartered in Atlanta, Georgia, Equifax made its Finovate debut at FinovateFall 2011 in New York. The company’s differentiated data, analytics, and cloud technology help financial institutions, companies, employers, and public agencies make better decisions with more confidence. Along with Experian and TransUnion, Equifax runs one of the three major credit reporting agencies in the US, has nearly 15,000 employees around the globe, and operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia-Pacific region.

Equifax is publicly traded on the NYSE under the ticker EFX and has a market capitalization of $24 billion.

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• International data, analytics, and technology company Equifax UK has teamed up with Greece’s sole credit bureau Tiresias.
• The strategic partnership is designed to help Tiresias develop modern business tools to enhance credit assessment, bolster fraud prevention, encourage responsible lending, and improve debt management.
• Equifax UK is a division of Atlanta, Georgia-based Equifax located in London, England.

In Greek mythology, Tiresias was a blind prophet famous both for his clairvoyance and for being transformed into a woman for seven years by the Greek goddess Hera.

Tiresias is also the name of the sole credit bureau in Greece and is the latest strategic partner of global data, analytics, and technology company Equifax UK. The two entities are collaborating in an effort to boost financial inclusion, stimulate economic growth, and bring advanced credit assessment and fraud prevention to businesses and consumers in Greece.

“Our partnership with Tiresias is a testament to everything we have built at Equifax and the strength of our global solution capabilities and expertise in the marketplace,” Equifax UK Chief Strategy & Innovation Officer Craig Tebbutt said. “This collaboration will further strengthen Tiresias as a strategic pillar of the Greek economy, drawing on Equifax data, analytics capabilities, and cloud technology to drive insights and decision-making confidence, helping more people live their financial best.”

Tiresias will benefit from access to Equifax’s advanced data and analytics expertise, technology platforms, and best-in-class practices to assist the bureau as it develops new, modern products and services. Among these new offerings are business tools to enhance credit assessments, bolster fraud prevention, encourage responsible lending, and improve debt management. In a statement, Tiresias highlighted Equifax’s global reach, with operations in 24 countries, as well as the firm’s combination of differentiated data, analytics, and cloud technology.

“This marks a new chapter in the Greek credit market, where transparency, reliability, and innovation will combine to deliver modern, safe, and more effective services to benefit society, while safeguarding the rights and freedoms of individuals and protecting their personal data,” Tiresias Chief Executive Officer Ilias Xirouchakis said.

Founded in 1992 and based in Marousi—a suburb north of Athens—Tiresias is an interbank company that provides reliable data on the assessment of credit risk for businesses and private citizens. The company seeks to limit the over-indebtedness of individual borrowers, facilitate responsible lending, protect against fraud, and enhance the security of commercial transactions via its Tiresias Risk Control System (TSEK).

Headquartered in Atlanta, Georgia, Equifax has been a Finovate alum since 2011. The company’s UK-based division, Equifax UK, offers credit scores and credit reports, as well as identity protection tools. The company also provides resources to help consumers find the right loan, credit card, automobile financing, and insurance offers, as well as educational information on financial subjects ranging from debt management to mortgages.

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