FICO Survey: Half of Thais Believe It Is OK to Exaggerate Income on Loan Applications and Insurance Claims
Stretched finances due to higher cost-of-living push many to consider falsifying information
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Giving false information is considered acceptable by many
When asked about their attitudes to giving false information for financial or material gain - known in banking as first-party fraud - half of Thais supported these behaviors. Around 25 percent of respondents said there are circumstances when it’s OK to exaggerate income on a loan or mortgage application, while 25 percent thought it was normal to do so. The survey revealed similar proportions of consumers would exaggerate an insurance claim or add items to a claim.
“The willingness to commit fraud for financial gain is concerning, it signals a strong need for Thai banks to bolster their fraud prevention models,” said
This sentiment is consistent with Southeast Asian neighbors
The results indicate that banks in
“The gloomy economic situation, made worse by the rising cost of living, has driven some Thais to desperate measures for credit access. Nevertheless, this cannot justify fraud,” said Leo. “By improving their ability to detect misrepresentation of information, financial institutions can safeguard themselves against losses from bad debt, while steering customers away from regrettable paths.”
Fully leveraging data and analytics to drive fraud protection
Financial institutions frequently possess the evidence required to distinguish between fraudulent and legitimate applications. However, fraud teams are frequently unable to utilize this data because it is siloed. These inefficiencies result in inadequate fraud protection and compromise the customer experience. Banks prompt customers with arduous and time-consuming identity checks, resulting in increased costs and duplications that cause frustration for customers.
“Given the region’s competitive banking landscape, utilizing the wrong fraud strategy can be costly,” said Leo. “To achieve success, fraud teams must strike a balance between strong fraud protection and meeting the legitimate needs of customers. This can be achieved through a holistic approach to applicant data, which enables effective differentiation between fraudulent and legitimate applications. The use of analytics and machine learning models will further bolster a bank’s fraud defenses, leading to better customer satisfaction.”
Conducted in late 2022, the report surveyed 1,000 people each in 14 countries:
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