TransUnion (NYSE: TRU) announced on Tuesday its latest data found that as personal loan delinquency rates rise, online fraud, which includes loan stacking, continues to make significant contributions to these increases. The credit information and information management service company noted that serious delinquency rates (90+ days past due) at the end of 2016 for personal loans originated in 2015 rose to 6.22%, up nearly 3% from the year-end 2015 delinquency rate of 6.05% for loans originated in 2014.
TransUnion reported:
“Serious delinquency rates (90+ days past due) for personal loans with characteristics of online fraud stood at 11.02% at the end of 2016 for loans originated in 2015. Online fraud includes fraudulent loan stacking, which involves attempting to secure multiple loans from one or more lenders within a short period of time. While down from the 11.81% rate at the conclusion of 2015 for loans originated in 2014, it represents even more borrowers because of the continued growth in the personal loan space.”
Steve Chaouki, executive vice president and head of TransUnion’s financial services business unit, also commented:
“As the prevalence of online fraud continues to grow, TransUnion’s vast data network allows us to mitigate the associated risk. Providing insights into fraud velocity from within our Fraud Prevention Exchange along with our new capability to include information about activity occurring across the TransUnion network – be it auto, credit card, mortgage or personal loans – sets us apart from the rest of the industry.”
The latest data comes less than six months after TransUnion launched its Fraud Prevention Exchange, which is part of TransUnion’s IDVision suite of solutions that provide businesses with a holistic approach to fraud and identity management.