Chapter 16. Credit and Lending Fraud
Pay me my money down, pay me or go to jailâ¦
Bruce Springsteen1
Lending fraud attracts a slightly different category of fraudsters, compared to the previous genres discussed. The appeal of hard cash at the end of the operation speaks to a population that is less tech savvy than crypto fraudsters, while the relative simplicity means avoiding the logistical complexities connected to shipping scheme cons.
Moreover, the concept of loans will attract people who do not necessarily see themselves as criminals (some of them believe theyâll repay the loan, even if they take it under false pretenses). They will often see themselves as victims of the traditional banking system, and for some of them this will be the first and only fraudulent act they will ever perform. Unfortunately, that doesnât make the loss to the bank or fintech any less real, the crime any more legitimate, or the fraudster in question easier to spot.
The MO weâre considering in this chapter is of a fraudster who applies for a loan without any intention of ever repaying it, and who does so repeatedly and systematically, through multiple identities. It is this kind of fraud that can result in dangerously mounting losses because, if not prevented, it is so repeatable.
Nonprofessional Fraudsters Engaging in Credit and Lending Fraud
There are cases in which individuals in desperate situations will use their own identities and legitimate information to rack up loans (the more, ...
Get Practical Fraud Prevention now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
