Fintech Steps Up to Mortgage Fraud


Just months following the revelation by brokers of rising levels of mortgage fraud in 2021/22, a Dublin based fintech, ID-Pal, has launched across the UK to help all financial services professionals in combating fraud.

Help for Advisers

The firm has set out to help advisers immediately confirm their client’s proof of identity and address within seconds. Over the past year, fraudsters have utilised more sophisticated avenues of conducting fraud, with the risk of more brokers being struck off without realising they have been an unknowing part of fraudulent activity – which has also grown in numbers.

Historical identity verification techniques are no longer sustainable in the digital-first mobile-ready environments we find ourselves in today. Manually verifying identity documents has become inefficient and insecure, with the risks of data flight and simple human errors making businesses very vulnerable to fraudsters.

ID-Pal is a combination of artificial intelligence and machine learning used to classify a document, fully avoiding any manual intervention for the adviser.

What is ID-Pal?

Integrating with existing workflows and an adviser’s customer relationship management system if required, ID-Pad streamlines all anti-money laundering and Know Your Customer processes into a singular, easy and secure business portal. The mortgage advisory firm UK Advisor has been using the process and advised all advice firms to adopt the technology, not just mortgage firms targeted.

The technology has been made available as both an off-the-shelf model as well as an app programme interface, both being fully GDPR compliant and ISO 27001 certified and covering 6000 identification documents across 200 countries and jurisdictions.

ID-Pad checks use a mixture of biometrics, facial recognition, liveliness testing, address verification and document checks, with a perceived imbalance of power between them and the lenders they work with.

Uneven Landscape for Brokers

An argument was raised that this was down to an uneven technology landscape, with brokers having far fewer tools at their disposal to protect them against the rising levels of fraud. Lenders systems are highly developed processes and AI-driven, with the issue being the reports and data being hidden and at risk of submitting dodgy business and being unaware.

Lenders can forget they are plugged into HMRC, whereas brokers have to take documents at face value as they can not tell the difference. Alongside the presence in the UK, ID-Pad has established itself in its native Ireland, the US and wider Europe markets.

For more information about identity management and any upcoming identity management event, check out the upcoming events from Whitehall Media.