In response to the escalating challenges posed by identity theft and the growing threat of synthetic identity fraud in the digital lending environment, Scienaptic AI and SentiLink have announced a strengthened product partnership.

Scienaptic AI, which is an artificial intelligence (AI)-powered credit underwriting platform provider, and identity verification and fraud detection solutions provider, SentiLink, are joining forces to address these critical issues.

This enhanced partnership aims to equip credit unions and lenders with advanced tools to effectively combat fraud. Identity fraud remains a significant cause of losses for credit unions, and the risk associated with synthetic identities is on the rise.

Recent studies have revealed a shocking 1.8 million consumer credit accounts potentially compromised by synthetic identity fraud within a year. Alarmingly, over 30% of these accounts were at risk of major delinquency or charge-offs, resulting in average losses ranging from $8,000 to $10,000 per incident.

Recognising the severity of this trend, the collaboration between Scienaptic and SentiLink seeks to revolutionise fraud detection.

SentiLink alliances development head Vivek Ahuja said: “By combining SentiLink’s data with Scienaptic’s AI, we’re equipping financial institutions with the necessary tools to effectively mitigate fraud risks and enhance the decision-making process behind their loans.

“Our analysis has shown that over 15% of synthetic identities specifically target credit unions. Our risk solutions, which are designed to detect identity theft and synthetic fraud at the point of application, form the core of this partnership.

“This collaboration enables financial institutions to approve more members safely, without introducing unnecessary friction into the onboarding process.”

By providing credit unions and lenders with cutting-edge tools, the alliance aims to intercept fraudulent applications at the point of origination. This strategy is designed to preserve the integrity of the lending process and safeguard the experiences of genuine members.

Moreover, credit unions can leverage SentiLink’s solutions to re-verify the identities of existing members when, for instance, personal information undergoes changes on an established account. The comprehensive approach of this partnership underscores its commitment to proactively addressing the evolving landscape of identity-related fraud in the financial industry.

Scienaptic AI client impact EVP Eric Steinhoff said: Our partnership with SentiLink is a cornerstone in our ongoing commitment to revolutionizing the technology used in credit decisioning.

“The integration of our technologies offers a holistic underwriting approach that harnesses fraud data and AI. This fusion creates highly predictive signals, effectively reducing fraud risk, optimising decision-making processes, and ultimately leading to a rise in approvals for deserving members.”