Fraud Case Study
A Fraud Scorecard for an Offline Cash Product
- To develop a fraud prevention scorecard to decrease the percentage of borrowers late on 1st payment by 30+ days with no contact achieved during collection stage (“fraudsters”).
- LGD of almost 100%.
- CredoLab SDK integrated to the bank’s Android application.
- Coverage of 87%.
- Seamless and easy IT integration – 3 weeks for full integration.
- Gini of 0.49.
By rejecting the worst 20% and accepting the best 10% of the population, the scorecard enabled the client to reduce their fraud rate by 37% (from 4.97% to 3.11%) with only a -5% (relative) AR decrease.