Nearly $2bn of credit applications were red-flagged as potential fraud in the last financial year.
New research from Veda has shown $1.9bn in credit applications were red-flagged as potential fraud risks, but not all lenders assessing the applications were aware of the risks. The credit reporting agency said red-flagged applications grew 52% in two years, and are continuing to rise as a percentage of applications.
“While most major credit providers in Australia conduct fraud checks on credit applications, there are a number of lenders who process high risk applications unaware of possible links to fraudulent activities,” Veda general manager of fraud and identity solutions Imelda Netwon said.
Veda ran the analysis on $1.6tr worth of credit applications checked by its credit bureau in the year to 30 June 2014.