Borrower Verification Process
- We employ a combination of proprietary intellectual property, commercially available licensed technologies and solutions to detect and prevent fraud. Our team employs techniques such as knowledge based authentication (KBA), behavioral analytics and uses specialized software to augment Peerform identity fraud detection systems.
Third-party services are used for a variety of tasks such as user identification (Lexis Nexis), credit checks (TransUnion) and OFAC compliance. Our dedicated team then conducts additional investigations of cases flagged for high fraud risk by verifying the income and employment data reported by each borrower.
- We consider fraud detection to be of the utmost importance. To that end, the following requirements are implemented:
- One required form of ID from borrowers.
- All loans issued on the platform are income verified. As such, borrowers go through a thorough income verification process. We ask for two paystubs and the underwriting team makes sure the information provided is truthful by checking that there is no more than a 10 % difference between the income stated on the application and the paystub annualized income.
- Occasionally, we pull IRS Tax Returns using the 4506T Forms provided by the borrower. If a borrower Credit Report is approved by the algorithm, we pull up a variety of reports such as the IDMV from TransUnion to compare the information provided to us with that which the borrower has provided to other vendors on file.
- In order to verify the borrower’s Bank Account Information, we debit a small amount from the provided bank account. We then ask the borrower to report the amount which was debited. This process ensures the validity of the borrower’s identity and bank account.
- We use a service provided by Twilio in order to instantly verify the borrower’s phone number. A text message is sent to borrower’s number and it must be verified by entering the code received.
- We use another service provided by MaxMind to automatically verify the borrower’s location using an automatic IP geolocation.
- Our system also automatically flags various issues, which are then dealt with manually by the underwriting team.
- Lastly, we use Lexis Nexis’ Instant Authentication through a questionnaire service for higher risk applications.
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