Software Solution Helps Zopa to Stamp Out Fraud

By Ryan Weeks on 3rd March 2015

P2P/Marketplace Lending

A fraudster attempting to borrow a significant sum of money from Zopa has been netted by the AU10TIX BOS service.

Software Solution Helps Zopa to Stamp Out Fraud

Zopa first tied up with fraud prevention outfit AU10TIX in late November 2014. The 100% automated tool provides a speedy and efficient method of verifying the authenticity of official forms of identification – like passports, driving licenses and national ID cards. The partnership is now starting to pay dividends for Zopa. AU10TIX BOS recently discovered and flagged an almost perfectly forged fake ID – thus preventing the fraudulent borrower from making off with a sizable amount of cash.

Manual detection of such an instance of fraud would require an impractical amount of time and expertise. The AU10TIX BOS algorithms, on the other hand, scan documents in an average of 5 to 8 seconds. The money saved via the system’s recent catch is reportedly more than enough to cover the costs of an entire year’s worth of AU10TIX BOS subscription. Ron Atzmon, Managing Director of AU10TIX, shed some light on the impact of the tool:

“It feels great to receive another validation to the effectiveness of this standard setting technology. This is the proof of the pudding, and in real “battle conditions”. What’s even nicer is that this sole case already made the investment worthwhile for our client. And this is only the direct ROI. Add to this fast response time, less back office load and you quickly realize that what might look like better fraud protection is actually also a business booster.”

This news ties in nicely with one of the key industry “building blocks” that we identified at last week’s AltFi Europe Summit 2015 – leveraging technology. The session explored the various benefits of working with software solutions in order to speed up and/or streamline platform processes. The panel discussion included a diverse range of providers: Orchard, PROFILE SW, Salesforce and Asset Match. Between them these companies cover institutional access, API usage and data collation, secondary market provision, and robust front and back-end solutions – including but not limited to customer relationship management (CRM) tools. You can watch the panel discussion in full at the foot of this article.

Paul Martin, Credit Risk Director at Zopa, explained the benefits of working with third party software solutions like AU10TIX:

“This is a good example of why we use world class technology to boost customer ID authentication and onboarding. Verifying the identity of Zopa borrowers is a critical element in our loan application process and the Au10tix platform provides an additional layer of confidence. It also achieves this in seconds."

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