Fraud Prevention System (FPS)

Optimize the mortgage application process with highly specialized fraud detection tool

The fight against fraud is a serious challenge mainly in the mortgage market. The emphasis generally placed on speed of the mortgage application process goes against the need for careful assessment of data. Incorrect evaluation of a potential mortgage lender is associated with vast expenses and can damage reputation of financial organizations.

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Fraud risk evaluation delivered by fast and efficient rule engine

Fraud Prevention System (FPS) is a technology which supports mortgage providers in fraud prevention and thus helps cut risks of discreditable investments. The most essential part of the FPS is a fraud scorecard utilized to carefully assess each mortgage application item on possible presence of fraud. Variables are checked on different levels of control detecting inconsistencies, improbabilities and similarities with previous registrations. On a basis of decision rules, a score is assigned to every application and if a specific limit set by the organization is exceeded, the item is identified as potentially fraudulent. All application are assigned to fraud researchers who evaluate them and follow the steps to investigate the particular fraud type as efficient as possible. The output of this evaluation is then sent to manager for approval. FPS provides additional functionality to use models of the Dutch Property Valuation (NBWO) in order to verify if the appraised value received by the notary represents the real value of property. Business rules exist like dynamic components of the software tool and can be easily configured to meet requirements of clients also outside the mortgage market.

Graphic representation of assessed cases in user-friendly interface

The user interface offers visual representation of data retrieved from mortgage applications and organizes it either in detail or in high level overview. Users can see the applied business rules and their impact on the final risk score value. According to this, mortgage applications are assigned to risk categories and grouped to ensure effective handling in further process management. In addition, users are able to add comments to entries, assign applications to different employees, enter date of their potential finalization, or attach documents from external systems.

Automated evaluation of mortgage application accelerates time to value

FPS brings effectiveness to the mortgage application process by quick automated disclosure of fraudulent cases thus directly influences the organization’s return on investment. Besides risk assessment, FPS provides users with a possibility to register new cases, modify previously administered ones, or perform extensive search in the database. With FPS, users are also able to create lists of attributes, which should be assessed with increased awareness as there is a higher risk of fraud.

By utilization of proven technology, organizations can significantly reduce time and operational errors associated with manual assessment of fraud.