Canadian Lenders Create First Industry Wide Fraud Taxonomy to Better Identify Bad Actors
Toronto, July 31, 2020 – The Canadian Lenders Association (CLA) has partnered with Lenders API, a data exchange infrastructure for lenders in order to standardize taxonomy for fraud reporting across Canada. The two organizations have produced a goldstandard list of fraud categories and definitions that will become the gold standard for reporting across all credit sectors.
Historically there have been industry inefficiencies due to lack of consistent language between credit providers. Though there is less ambiguity around diagnosing fraudulent activity, the categorization and reporting of fraud is more nuanced and often varies between individual firms.
In order to create this taxonomy, CLA and Lenders API conducted consultations with over 20 lenders in multiple sectors and regions.
“Lenders API is a platform for real time data exchange between lenders” said Gary Schwartz, President of CLA. “By moving the entire industry towards a single taxonomy, we will improve workflows of individual lenders and dramatically increase their ability to identify fraudulent behaviour.
About Canadian Lenders Association
Canadian Lenders Association (CLA) is the largest lending trade group in Canada. The CLA promotes transparency and fosters responsible and ethical lending practices.
About Lenders API
Lenders API provides data rails to fintech lenders. Lenders API allows lenders to compliantly compare applicant data in real time in order to prevent fraud and loan stacking. Lenders API is based in Toronto, Canada. Visit www.lendersapi.com to learn more.