US-based consumer credit reporting agency TransUnion has announced a partnership with British fintech company Tymit to help alleviate fraud risks.

The partnership is also aimed at allowing seamless experiences for consumers applying for Tymit’s instalment credit card.

Based in London, Tymit provides an alternative to conventional credit cards and buy now, pay later offerings.

The firm is said to have introduced the world’s first instalment credit card.

Tymit’s credit card service saw an upsurge in fraudulent applications, with most of the prevalent cases associated with identity theft and impersonation, said TransUnion.

The fintech company deployed further controls, including selfie-based document verification which resulted in a decline of fraud rate. However, Tymit faced a level of additional friction for genuine customers.

TransUnion created a customised digital risk scorecard for Tymit that considered a sample of 10,000 application records and identified techniques to mitigate potential fraud without affecting the customer experience.

Following the testing of the strategies, Tymit found that the most efficient suite for their requirements included device risk, email ID, mobile risk, mobile ID, and real time fraud alerts features. 

TransUnion UK fraud and ID general manager Chad Reimers said: “We’re proud to have partnered with Tymit to help the organisation improve its fraud prevention and customer experience.

“In order to support Tymit, we’ve implemented bespoke layered fraud controls based on our award-winningii TruValidate solution, which resulted in reduced friction for 87%i of credit applications without compromising on fraud detection rates.”

The collaboration has helped Tymit to reduce false positive rates nearly five-fold times. Tymit is also able to discover incremental fraud cases, said TransUnion.

Tymit risk vice president Bis Das said: “We are committed to providing our customers with a streamlined experience, financial peace of mind and full control over their spending and repayments.

“Working with TransUnion has allowed us to do this while also reducing fraud. We are now able to apply our document and selfie controls more effectively to different stages of a customer journey.”