Application fraud occurs when an individual deliberately provides false, stolen, or misleading information in an application for a financial services product, such as loans, credit cards, or bank accounts. Fraudsters may use stolen or synthetic identity documents to commit application fraud with a wide range of goals, from gaining unauthorized access to credit to facilitating money laundering, leading to significant financial losses, regulatory issues, and/or reputational damage for businesses.
Use case/ examples for age verification:
Credit card application fraud: Submitting inflated income information (e.g., fake pay stubs or tax returns), stolen personal data or a synthetic identity to fraudulently obtain unsecured credit cards.
Account opening fraud: Using synthetic or stolen identities to open new accounts at a financial institution, for the purpose of committing financial fraud or laundering money.
Insurance application fraud: Providing false or misleading information on an insurance policy application, in order to unlawfully obtain coverage or receive benefits. An example might include the presentation of a falsified four-point inspection in order to obtain homeowners' insurance and later make a claim for the home's damages.
Loan application fraud: Submitting falsified employment or income information, or stolen personal information, to secure a loan for which a person would not otherwise qualify.
Related terms
Related content
Case study: NatWest achieves reduction in account opening times and fraudulent applications
Mitek streamlines Kabbage’s mobile loan applications with automated ID verification & data-fill
400 applications a minute? No problem. Mitek and Digidentity unlock digital access to vital government services for millions of U.K. residents
