CTOS IDGuard reveals surge in fraudulent loan applications

CTOS IDGuard has unveiled new statistics indicating that 44% of all flagged credit applications from member banks are linked to syndicates and fraud rings.

This significant revelation underscores the ongoing battle against financial crime in Malaysia.

Rising fraudulent loan applications

According to data collected by CTOS IDGuard from 9.44 million credit applications over the past 45 months, a staggering RM519 million in potentially fraudulent applications have been flagged since September 2020.

This represents a 62% increase from the RM319 million reported over the previous 36 months.

CTOS IDGuard is an integral part of CTOS’ suite of fraud and identification services, which also includes CTOS eKYC, CTOS Multi-Face ID, and CTOS Digital Footprint.

Covering over 65% of Malaysia’s banking assets, CTOS IDGuard utilises a unique and extensive database to detect and prevent fraud.

Advanced fraud detection with CTOS IDGuard

CTOS Digital Group CEO Erick Hamburger highlighted the role of machine learning in enhancing the efficiency of CTOS IDGuard.

“Over the past year, we have been using machine learning to increase the efficiency of the CTOS IDGuard Fraud Bureau. T

he latest figures have shown that this has improved detection rates by over 6% and is likely to be an important tool in the fight against known fraudsters and syndicates,” Hamburger said.

He emphasised the importance of these improvements for the sector and the economy as digital finance continues to grow.

GBG, the provider of CTOS IDGuard’s fraud and financial crime prevention engine, collaborates closely with CTOS. Carol Chris, General Manager, APAC at GBG, noted the increasing sophistication of criminal networks.

“Criminal networks continue to become more organised and sophisticated, making it challenging for financial institutions to detect fraudulent activities.

Together with CTOS, we are dedicated to safeguarding member banks by giving them data intelligence to make the best decisions about their customers when it matters most,” Chris stated.

The collaboration between CTOS and GBG underscores the critical role of data intelligence in combating financial crime.

By leveraging advanced technology and extensive databases, CTOS IDGuard provides member banks with the tools necessary to identify and prevent fraudulent activities effectively.

These advancements are crucial in the face of growing digital finance and increasingly sophisticated fraud techniques.

The continued improvement in detection rates not only protects financial institutions but also contributes to the overall stability and security of Malaysia’s financial system.