When a lender receives a loan application, it endeavors to ensure that the applicant will pay the lender back.
But even with the proper controls, a certain percentage of loans go unpaid.
Especially if the applicant looks really good on paper, but isn’t…and doesn’t even exist because it’s a synthetic identity.
PYMNTS describes the threat from deepfake borrowers:
“Across the lending industry, a new category of fraud is emerging that combines deepfake video, cloned voices, synthetic identity creation, fabricated employment histories and AI-generated financial behavior into a single engineered persona. These synthetic borrowers are not merely fake identities in the traditional sense. They are algorithmically optimized consumers designed to survive onboarding checks, satisfy underwriting models and disappear once loans are funded.”
Disappearing borrowers is not a good thing.
Know your customer.
Bredemarket 