With increasing number of frauds, greater number of banks is approaching external agencies with forensic skills. These agencies are classified under different categories like field investigation agencies, risk containment units and detective agencies.
Banks do so to ratify their data concerning the applicants. It also helps them in their internal credit scorings. All applications are evaluated by specialist risk containment teams.
Subrat Pani, business head of cards at Kotak Mahindra bank said that though they did the due diligence process themselves with the help of CIBIL (credit bureau), they had to approach such agencies in order to deal with fraudsters since CIBIL contains information about the existing borrowers only. The agencies possess huge databases.
He added “Once we get an application, we pass the data to the field investigative agency. The agency carries out basic address, job and individual verification, which are the first stage of the verification process. Then, the bank assesses the different documents and passes them on to some risk containment units to check the authenticity of the documents, after which, the bank takes the final call”.
Sanjay Singh, CEO of Indian detective Agency says that in several cases the proof submitted by are fake like salary slips are manually or digitally altered. He said that they had also come across fake PAN cards.
A senior executive with a detective agency said that the typical frauds that they come across include presenting proofs of non-existent residences or businesses, incorrect details about qualification, salary and work experience.
Fake credit card frauds are on a rise. Credit card frauds have increased with 220 cases registered so far, a 34 percent jump from last year’s number of 145. The easy availability of credit cards and a sudden spurt in online shopping is said to be a major reason.
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