However, the study also highlighted that financial institutions can generate increased revenue and drive sales through a successful fraud protection function.
The firm said that around 35 percent of respondents said there are circumstances when it’s OK to exaggerate income on a loan or mortgage application, while 15 percent thought it was normal to do so. The survey revealed similar proportions of consumers would exaggerate an insurance claim or add items to a claim.
FICO said the results indicate that banks in the Philippines may be making inaccurate risk assessments as a result of false information on applications, potentially leading to financial losses from inflated insurance claims. Additionally, customers may not be aware that providing incorrect information on applications or claims is illegal, the firm added.
“However, fraud teams are frequently unable to utilize this data because it is siloed. These inefficiencies result in inadequate fraud protection and compromise the customer experience,” the company’s statement read. “Banks prompt customers with arduous and time-consuming identity checks, resulting in increased costs and duplications that cause frustration for customers.”