National Hunter

The joint credit bureau (earlier - Ekspirian-Interfax) and Experian company was announced in 2011 start of a system for detection of fraudulent credit statements which is based on world-class technologies and considers the Russian specifics

The new service which received the name National Hunter ("Hunter") is the innovative development of the international company Experian. Service already proved in Europe, America and Asia. Work on this service in Russia was conducted since the beginning of 2011 within a pilot project in which five large Russian banks participated.

"Application fraud" is a common problem, and this problem is relevant both for emerging markets, and for mature. Fraud level in Russia will also grow in retail lending if not to render active counteraction. Hunter which is already implemented by Experian in Great Britain, the USA, Spain, South Africa, South Korea, Australia allowed to reduce considerably scales of this disaster and to reduce losses of banks", - the CEO of the Joint Credit Bureau (JCB) and the area manager on Russia and the CIS of Experian company Daniel Zelensky said.

The main effect from connection to National Hunter service is a minimization of a share of fraud in the loan portfolios of participating banks and, as a result, significant decrease in financial losses from "hopeless" debts. National Hunter will also promote increase in efficiency of banks as credit institutions will be able unambiguously to block fraudulent requests, to focus efforts on not clear cases and in the accelerated order to confirm credit applications from fair clients.

Intended for the banks specializing in retail lending, National Hunter creates a unique environment for joint work of the organizations for fraud identification. Swindlers come to light at a stage of giving by the client of bank of the application for receiving the credit. Contradictory information in credit statements and data fit with the known cases of frauds comes to light (i.e. coincidence to requests which were already defined as fraudulent earlier).

The Hunter system uses, on the one hand, all advantages of bureau: availability of qualitative data and modern technologies for work with them, with another, advantages of a specialized software of Experian and also the experience of use of data accumulated by the company for identification of cases of fraud. It will allow banks to create the general pool of data on fraud that will significantly increase their opportunities for identification and prevention of fraud risks and also will protect community of the organizations of retail lending in general.

"At system development we placed emphasis as on achievement of the maximum level of accuracy at the indication of a zone of risk, and on creation of as much as possible universal system to allow to use a system to banks with the most different business processing of credit statements. At the same time we strictly observe the Russian legislation during the work with personal data. In particular, to provide compliance of a system to requirements of the legislation, the mechanism of depersonalization of data was developed", - D. Zelensky told.

National Hunter is intended for the banks specializing in retail lending. A problem of Service - detection of highly risk credit statements at a stage of giving by the client of bank of the loan application. Key feature of National Hunter is that for detection of fraudulent schemes with the credits data not only that bank to which the application, but also data obtained from other participating banks of Service is submitted are used. Similar use of the integrated data of several banks repeatedly increases the probability of detection of fraudulent schemes.

According to the Central Bank, for April 1 of this year the total debt on the credits made 791.27 billion rubles, and the quantity of cases of fraud when receiving the credits grew twice in comparison with the beginning of last year. To compensate the high level of non-returns on the credits banks are forced to put risks in interest rates and to toughen rules of issue of loans – and it concerns everyone.

The question of fraud in retail lending is particularly acute enough in any country of the world and Russia in this case not an exception. According to data of the Ministry of Internal Affairs of the Russian Federation for the first 6 months 2011 2.2 thousand crimes connected with credit fraud from which general damage was about 1.6 billion rubles were committed. And it is only a visible part of an iceberg – overwhelming quantity of cases of fraud in retail lending do not come to court, therefore are not included in statistics.

Practice of crediting extends every year, clients "wander" in search of the solution of financial problems of one bank to another. Estimate the client who came to bank "from the street", a difficult task: whether he will regularly pay contributions, or ahead of a turn of nonpayments on the credit. And nonpayments are different too: one case the client temporarily was left without work and absolutely another – conscious deception of bank, fraud.

Of course, in each bank there is the security service, the system and procedures of check of the applicant. But the problem all the same remains – there are not enough sources of reliable information about applicants.

It would seem, there is a simple solution – to banks rather regularly to communicate. However in practice it is difficult to achieve, banks are connected by non-disclosure obligations of personal information and volumes of the arriving credit statements do not allow to approach consideration of each request individually. This a situation difficult at first sight has an effective solution - the Service for fight against credit fraud developed by Experian Decision Analytics company together with Bureau of credit histories Experian Interfax National Hunter.

National – because is able to service quickly the retail banks working at all territory of Russia. Hunter – because reveals attempts of fraud with receiving borrowed funds at a stage of filing of application on receiving the credit.

The principle of work of Hunter – comparison of each application for receiving the credit submitted to bank with the statements submitted in due time to other participating banks of Service and which are already stored in the Bureau of Credit Histories (BCH).

Comparing on defined, put in a system, the application submitted rules to the similar questionnaires which are already processed by other banks, Hunter not just finds a contradiction, inadmissible for bank, but also points to specific point of the statement in which this contradiction is revealed. In other words Hunter points to statement point, filling which the client, most likely, tried to deceive bank.

It is very important point. The alternative attempts of creation of the systems of type made in the market essentially concede National Hunter to it. Revealing a contradiction, such systems mark a stamp "suspicion on fraud" all statement entirely without indication of a specific zone of risk. At such approach, the bank clerk is forced or to be reinsured and to reject the request (and the speech can go that the client only mixed a registration address with the registration address and actually is a reliable citizen), or on the risk to approve the request (though the applicant can be the swindler who used the stolen documents).

Service National Hunter "suspiciously" gives a mark not on all questionnaire of the applicant, and on specific contradictory point that gives the chance to the bank clerk to make the competent decision: correct an intermittent error and not lose the client, or stop real attempt of fraud.

Other important point, in the course of work with a system National Hunter banks do not break non-disclosure obligation of personal information of borrowers. Comparing the statement of the client to the data of other applicants which are already available in BKI, the bank operates with the depersonalized data. Neither the name of the applicant, nor his passport data reveal.