A new solution for lenders, including store card providers, can check for suspicious activity at a household address to help protect against fraud.
Equifax has launched its Address Check to help lenders fight financial crime.
The solution will flag addresses with an unusually high number of financial accounts or that are known fraudulent mail forwarding addresses so that lenders can investigate the circumstances and help protect against fraud and money laundering.
Equifax Address Check is the first to provide this information at household rather than postcode level, allowing lenders to gain a better understanding of their existing and potential customers to comply with ‘know your customer’ requirements.
The solution runs detailed analysis of various Equifax databases against a lender’s book of customers and prospects.
Cases are categorised by risk level and the system will identify why an address has been flagged as higher risk so that cases can be clearly prioritised. The dashboard allows lenders to easily view all the information so that they can use the insights across their application and customer management functions, with the underlying data made available to the lender’s various systems.
John Marsden, Head of Identity and Fraud at Equifax, says the solution can be used for any product that has a bill associated with it, such as a store card.
“If one single home address is connected to an exceptionally high level of accounts it will often mean higher levels of diligence is required. While some properties may be heavily populated, the data often means that the property has a higher tendency to be used for fraud or money laundering and indeed, we need to consider whether the occupants of the home are overextending themselves by taking on too much debt.
He adds: “The reasons for excessive activity at an address could of course be genuine, but lenders need to be able to properly investigate and determine the right course of action.”