RSSFraud !?
May 04
Fraud is a fact of life when dealing with short term loans. From both a lender and a customer stand point. Customers deal with the worst of it, since they are rarely able to identify fraud and resolve it. Ex’s apply in their name, co-workers apply for others names and data theft.
Of all the fraud lenders see, I would guess 90% of the time the fraudster has some sort of relationship with the victim. That’s frustrating (and hard to spot for lenders). It’s sad that people need to hurt and do damage to friends and family for a few hundred dollars.
For Lenders, fraud is usually easier to spot. Not always easy, there are some dedicated fraudsters – but with the tools and background checks in place, the game is tilting toward the lenders to find and detect fraud.
The sad fact is, everyone is a victim of fraud when a lender has to cover the costs. It increases the rate that a lender must charge to stay profitable and that cost is passed on to good customers. More on this later.
