Informed Fights Fraud

Reduce friction, win more deals and reduce fraud risk

What is Fraud?

Informed primarily focuses on fake or altered paystubs and bank statements, and over-stated income as key indicators or red flags for fraud. Lenders must defend against a growing list of fake paystub sites while ensuring their borrowers aren’t inconvenienced. The last thing a lender wants is to blame an innocent consumer for faking an income document.

But lenders are also dealing with a 90% increase in delinquency, within the first 60 days, if income is overstated. And analysis shows that income is overstated on ~38% of loan applications. Knowledge graphs are a crucial fraud-fighting tool. They are part of Informed’s vertical AI strategy that loan officers use as a support tool to detect fraud.

Without standard verifications for paystubs, analysts have to identify random discrepancies. Spotting them manually them is hard – there’s no point of reference. Fake templates are created all the time, and phony paystub sites are a billion-dollar market. Fraud detection is complex and requires timely reporting, consistent identification, and implementation of lessons learned. Informed is expanding document fraud detection to bank statements and other consumer documents.


As loan amounts increase and originations shift to digital, income and employment fraud rises, costing lenders billions. In auto loans alone,  employment and income fraud cost lenders $4.7B in 2021.

Applicants report phony income supported by fake paystubs, affecting credit risk and portfolio performance.  When a falsified paystub is presented, it constitutes paystub fraud – and, it’s rising. 

There’s no  government agency that verifies paystubs because there are no defined standards. This makes identifying this type of fraud exponentially harder.


Across our lenders’ portfolios, we see a 3.4% average fraud rate – based on altered paystubs – up from 2.25% last year. In 2022 Informed flagged 16378 altered paystubs and helped avoid $2B in losses based on LexisNexis “True cost of Fraud.”

Informed’s Data Consortium of 65+ million records spans millions of applicants and documents, revealing industry insights and benchmarks on dealer fraud and, income and employment misrepresentation. Informed supports 729 templates and variations of those templates with a dedicated fraud team. Our low false positive rate of .02% provides confidence in our ability to accurately and automatically detect fraud.

See our Paystub Fraud guide for more info

A Lender's Intro to Fraud eBook

Upcoming Webinar: Crossing the chasm into the new digital world: The impact of AI and automation in creating a fully digital auto ecosystem