Nova Credit introduces fraud detection enhancements to ‘Income Navigator’

Cross-border credit reference provider Nova Credit has unveiled enhanced fraud detection capabilities in its ‘Income Navigator’ tool, improving its ability to identify falsified documents amid the rising threat of fraud.

Nova Credit cited a recent study which forecast that AI-driven fraud losses could reach $40 billion by 2027.

According to Nova Credit, the risk is “particularly acute” in document-based income verification, given that fraudsters can use generative AI to falsify documents to gain approval for apartments, credit cards, loans, and other products.

The enhancement to ‘Income Navigator’ means that its analysis of both PDFs and images can now detect sophisticated tampering through more than 700 fraud indicators, which are then “distilled” into clear insights.

Income Navigator reduces reliance on documents by 60% through two key capabilities, namely direct data access and intelligent income analytics.

Nova Credit’s ‘Income Navigator’ connects directly to thousands of financial institutions, covering 98% of US consumers, meaning businesses can instantly verify income from the source, and removing the need to request, collect, and review traditional verification documents.

The tool’s processing engine automatically analyses transactions from financial institutions and payroll systems to accurately identify income, including traditional salaries and gig economy earnings.

However, when documents are necessary, Nova Credit said that its newly-enhanced fraud detection provides a “clear verdict” for each document, “flagging potential tampering with specific reason codes that help businesses understand verification outcomes” and extending to image verification.

Income Navigator’s strengthened fraud detection capabilities provide businesses with tools to identify advanced document manipulation and reduce manual review requirements by 70%.

Akaash Gupta, head of income verification partnerships at Nova Credit, told Open Banking Expo: “Generative AI offers many benefits but also enables identity theft and fraud, especially in document manipulation.

“That’s why we’re excited to have launched new enhancements to our Income Navigator solution to combat the rising document fraud threat.

“These enhancements help our clients minimize document usage, while detecting forged or manipulated files and providing detailed analysis during income verification.”

Gupta added that with bad actors continuing to exploit evolving technology, it is crucial for organisations to implement measures that identify and counter risks quickly and accurately.

Further reading: Nova Credit teams up with Akoya ahead of US Open Banking regulation