FICO Survey: Half of Thais Believe It Is OK to Exaggerate Income on Loan Applications and Insurance Claims
May 29 2023 - 10:00PM
Business Wire
Stretched finances due to higher cost-of-living
push many to consider falsifying information
FICO (NYSE: FICO), a leading global provider of analytics
software, today announced further findings from its consumer fraud
survey exploring attitudes and preferences towards fraud checks.
The study revealed that almost half of Thais are willing to commit
fraud to obtain a loan or file an insurance claim. However, it also
highlighted that financial institutions can generate increased
revenue and drive sales through a successful fraud protection
function.
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FICO Survey: Half of Thais Believe It Is
OK to Exaggerate Income on Loan Applications and Insurance Claims
(Graphic: FICO)
More information:
https://www.fico.com/es/latest-thinking/ebook/consumer-survey-2022-fraud-identity-and-digital-banking-thailand
Giving false information is considered acceptable by
many
When asked about their attitudes to giving false information for
financial or material gain - known in banking as first-party fraud
- half of Thais supported these behaviors. Around 25 percent of
respondents said there are circumstances when it’s OK to exaggerate
income on a loan or mortgage application, while 25 percent thought
it was normal to do so. The survey revealed similar proportions of
consumers would exaggerate an insurance claim or add items to a
claim.
“The willingness to commit fraud for financial gain is
concerning, it signals a strong need for Thai banks to bolster
their fraud prevention models,” said C.K. Leo, FICO’s lead for
fraud, security and financial crime in Asia Pacific. “A robust
fraud prevention strategy would not only safeguard customers’
interests but also strengthen the bottom line of businesses.”
This sentiment is consistent with Southeast Asian neighbors
Indonesia and The Philippines, and interestingly even more
pronounced in Malaysia where over 60 percent of the respondents
said such behaviors are normal.
The results indicate that banks in Thailand may be making
inaccurate risk assessments as a result of false information on
applications, potentially leading to financial losses from inflated
insurance claims. Additionally, customers may not be aware that
providing incorrect information on applications or claims is
illegal.
“The gloomy economic situation, made worse by the rising cost of
living, has driven some Thais to desperate measures for credit
access. Nevertheless, this cannot justify fraud,” said
Leo. “By improving their ability to detect misrepresentation
of information, financial institutions can safeguard themselves
against losses from bad debt, while steering customers away from
regrettable paths.”
Fully leveraging data and analytics to drive fraud
protection
Financial institutions frequently possess the evidence required
to distinguish between fraudulent and legitimate applications.
However, fraud teams are frequently unable to utilize this data
because it is siloed. These inefficiencies result in inadequate
fraud protection and compromise the customer experience. Banks
prompt customers with arduous and time-consuming identity checks,
resulting in increased costs and duplications that cause
frustration for customers.
“Given the region’s competitive banking landscape, utilizing the
wrong fraud strategy can be costly,” said Leo. “To achieve
success, fraud teams must strike a balance between strong fraud
protection and meeting the legitimate needs of customers. This can
be achieved through a holistic approach to applicant data, which
enables effective differentiation between fraudulent and legitimate
applications. The use of analytics and machine learning models will
further bolster a bank’s fraud defenses, leading to better customer
satisfaction.”
Conducted in late 2022, the report surveyed 1,000
people each in 14 countries: Thailand, the USA, Canada, Brazil,
Mexico, Colombia, Peru, Malaysia, The Philippines, Indonesia, South
Africa, Germany, the UK and Sweden.
About FICO
FICO (NYSE: FICO) powers decisions that help people and
businesses around the world prosper. Founded in 1956, the company
is a pioneer in the use of predictive analytics, AI and data
science to improve operational decisions. FICO holds more than 200
US and foreign patents on technologies that increase profitability,
customer satisfaction and growth for businesses in financial
services, manufacturing, telecommunications, health care, retail
and many other industries. Using FICO solutions, businesses in
nearly 120 countries do everything from protecting 2.6 billion
payment cards from fraud, to improving financial inclusion, to
increasing supply chain resiliency. The FICO® Score, used by 90% of
top US lenders, is the standard measure of consumer credit risk in
the US and other countries, improving risk management, credit
access and transparency.
Learn more at http://www.fico.com.
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Neil Mirano RICE for FICO +65 3157 5680
neil.mirano@ricecomms.com
Saxon Shirley FICO +65 9171 0965 saxonshirley@fico.com
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