{"id":834,"date":"2016-05-13T13:34:23","date_gmt":"2016-05-13T13:34:23","guid":{"rendered":"http:\/\/frslabs.com\/frsblog\/?p=834"},"modified":"2025-09-19T10:32:03","modified_gmt":"2025-09-19T10:32:03","slug":"application-fraud-alarming-increase-in-loan-fraud","status":"publish","type":"post","link":"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/","title":{"rendered":"Application Fraud \u2013 Alarming increase in loan fraud."},"content":{"rendered":"

From fake documents to outright cheating, major Indian Banks are seeing a massive spike in application fraud and first party fraud<\/a>. Just a few years ago, a figure of 5-10% first-party fraud would have been dismissed as exaggerated. However, bankers are feeling the heat with the doubling of non-performing assets as a result of fraud in as many years.<\/p>\n

According to the report by the leading daily The Hindu:<\/em> \u201cBad loans extended on the basis of fake documents and outright cheating, soared to almost Rs.13,000 crore (~2 billion USD)  in 2015-16, more than double the amount two years ago and more than 16 per cent higher than the Rs.11,125 crore recorded in 2014-15″.<\/p>\n

\"Application<\/a>
Application Fraud – FRS Labs<\/figcaption><\/figure>\n

One leading bank \u201cBank of India\u201d has identified $95 million worth of loans as being granted on the grounds of fake documents, up from just $360,000 last year. A two hundred and fifty fold increase (yes, you have read it right) is beyond comprehension. This is despite the pervasive use of credit bureau scorecards and human verifications (layers of people authorising a transaction) for granting loans. Given that the public sector banks loan only to about 5% of the adult population in India, the scale of fraud is staggering.<\/p>\n

The report goes on to bash the bankers saying that several public sector banks could be subject to fresh scrutiny by the Central Bank in a drive to clean up their books by 2017. Isn\u2019t it time that the Bankers invested in rock solid application fraud controls <\/a>that actually worked rather than relying entirely on the credit bureau scoring models and outdated risk models that were created decades ago.<\/p>\n

Learn more about Application Fraud ><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Application fraud is committed when fraudsters provide incomplete, inaccurate, fabricated or stolen information with an intent to defraud the service provider.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":"yes"},"categories":[1],"tags":[],"yoast_head":"\nApplication Fraud<\/title>\n<meta name=\"description\" content=\"Application Fraud\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shankar\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.frslabs.com\/frsblog\/#website\",\"url\":\"https:\/\/www.frslabs.com\/frsblog\/\",\"name\":\"FRSLABS\",\"description\":\"Privacy Protection | Identity Verification | Fraud Managment\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.frslabs.com\/frsblog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/frslabs.com\/frsblog\/wp-content\/uploads\/2016\/05\/Loan_Fraud_India_2016.png\",\"contentUrl\":\"https:\/\/frslabs.com\/frsblog\/wp-content\/uploads\/2016\/05\/Loan_Fraud_India_2016.png\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/#webpage\",\"url\":\"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/\",\"name\":\"Application Fraud\",\"isPartOf\":{\"@id\":\"https:\/\/www.frslabs.com\/frsblog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/#primaryimage\"},\"datePublished\":\"2016-05-13T13:34:23+00:00\",\"dateModified\":\"2025-09-19T10:32:03+00:00\",\"author\":{\"@id\":\"https:\/\/www.frslabs.com\/frsblog\/#\/schema\/person\/44aa0b93c2b856fcc15543185e8dbf3d\"},\"description\":\"Application Fraud\",\"breadcrumb\":{\"@id\":\"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.frslabs.com\/frsblog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Application Fraud \\u2013 Alarming increase in loan fraud.\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.frslabs.com\/frsblog\/#\/schema\/person\/44aa0b93c2b856fcc15543185e8dbf3d\",\"name\":\"Shankar\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.frslabs.com\/frsblog\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/2b71e9e7aa03a6cdafa4d0ae11becd9b?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/2b71e9e7aa03a6cdafa4d0ae11becd9b?s=96&d=mm&r=g\",\"caption\":\"Shankar\"},\"sameAs\":[\"http:\/\/www.frslabs.com\"],\"url\":\"https:\/\/www.frslabs.com\/frsblog\/author\/shankar\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Application Fraud","description":"Application Fraud","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/","twitter_misc":{"Written by":"Shankar","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/www.frslabs.com\/frsblog\/#website","url":"https:\/\/www.frslabs.com\/frsblog\/","name":"FRSLABS","description":"Privacy Protection | Identity Verification | Fraud Managment","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.frslabs.com\/frsblog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"ImageObject","@id":"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/#primaryimage","inLanguage":"en-US","url":"https:\/\/frslabs.com\/frsblog\/wp-content\/uploads\/2016\/05\/Loan_Fraud_India_2016.png","contentUrl":"https:\/\/frslabs.com\/frsblog\/wp-content\/uploads\/2016\/05\/Loan_Fraud_India_2016.png"},{"@type":"WebPage","@id":"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/#webpage","url":"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/","name":"Application Fraud","isPartOf":{"@id":"https:\/\/www.frslabs.com\/frsblog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/#primaryimage"},"datePublished":"2016-05-13T13:34:23+00:00","dateModified":"2025-09-19T10:32:03+00:00","author":{"@id":"https:\/\/www.frslabs.com\/frsblog\/#\/schema\/person\/44aa0b93c2b856fcc15543185e8dbf3d"},"description":"Application Fraud","breadcrumb":{"@id":"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.frslabs.com\/frsblog\/2016\/05\/13\/application-fraud-alarming-increase-in-loan-fraud\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.frslabs.com\/frsblog\/"},{"@type":"ListItem","position":2,"name":"Application Fraud \u2013 Alarming increase in loan fraud."}]},{"@type":"Person","@id":"https:\/\/www.frslabs.com\/frsblog\/#\/schema\/person\/44aa0b93c2b856fcc15543185e8dbf3d","name":"Shankar","image":{"@type":"ImageObject","@id":"https:\/\/www.frslabs.com\/frsblog\/#personlogo","inLanguage":"en-US","url":"https:\/\/secure.gravatar.com\/avatar\/2b71e9e7aa03a6cdafa4d0ae11becd9b?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/2b71e9e7aa03a6cdafa4d0ae11becd9b?s=96&d=mm&r=g","caption":"Shankar"},"sameAs":["http:\/\/www.frslabs.com"],"url":"https:\/\/www.frslabs.com\/frsblog\/author\/shankar\/"}]}},"_links":{"self":[{"href":"https:\/\/www.frslabs.com\/frsblog\/wp-json\/wp\/v2\/posts\/834"}],"collection":[{"href":"https:\/\/www.frslabs.com\/frsblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.frslabs.com\/frsblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.frslabs.com\/frsblog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.frslabs.com\/frsblog\/wp-json\/wp\/v2\/comments?post=834"}],"version-history":[{"count":7,"href":"https:\/\/www.frslabs.com\/frsblog\/wp-json\/wp\/v2\/posts\/834\/revisions"}],"predecessor-version":[{"id":1990,"href":"https:\/\/www.frslabs.com\/frsblog\/wp-json\/wp\/v2\/posts\/834\/revisions\/1990"}],"wp:attachment":[{"href":"https:\/\/www.frslabs.com\/frsblog\/wp-json\/wp\/v2\/media?parent=834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.frslabs.com\/frsblog\/wp-json\/wp\/v2\/categories?post=834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.frslabs.com\/frsblog\/wp-json\/wp\/v2\/tags?post=834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}