Friendly fraud and limited resources to fight it
Zirtue’s automated payments and streamlined platform make repayment easy—but dishonest loan recipients make the process difficult. The Data Analytics team found that growing numbers of users were contacting their banks to dispute their loan payments, making false claims that they had not authorized the transactions, despite having agreed to the terms of the repayment plan. This issue was compounded by the fact that Zirtue had access to a very limited amount of user data, preventing them from proactively recognizing suspicious behaviors and stopping the fraud before it happened.
Additionally, the vetting process for taking out a loan was lengthy and required tedious and time-consuming email exchanges between Zirtue and the borrower, to ensure the borrower could confirm their identity. This manual work frequently delayed loans, creating headaches for the Data Analytics team and borrowers alike, and it was looking as though another team member would need to be hired to help handle the workload. Zirtue needed a solution that would stop friendly fraud before it became an issue, and streamline the vetting process to create better user experiences and optimize their data analysts’ time.