Zest AI Launches AI-Driven Fraud Detection for Lenders

Date – 07-Aug-2024

Zest Protect enables lenders to make loan decisions with greater confidence by providing accurate and comprehensive application fraud detection.

Zest AI, a leader in AI-driven lending technology, has unveiled its latest solution, Zest Protect, designed to enhance fraud detection for lenders. Zest Protect swiftly and accurately identifies fraudulent activities during the loan decisioning process, helping credit unions, banks, and other lenders manage the growing threat of application fraud while preserving a positive borrower experience.

According to the Federal Trade Commission, consumer fraud losses in 2023 surpassed $10 billion, with credit unions and community banks experiencing a 69% increase in fraud cases across consumer accounts.

“Lenders need to leverage AI to combat fraud, especially as AI-driven fraud becomes more prevalent,” said Adam Kleinman, Head of Strategy and Client Success at Zest AI. “Zest Protect was developed to provide an efficient and accurate fraud detection tool that addresses all types of fraud, including AI-generated threats, ultimately enhancing lending confidence for our bank and credit union clients.”

Zest Protect utilizes Zest AI’s advanced machine learning technology to detect both first-party and third-party fraud and identify income discrepancies within the automated loan decisioning process. This integrated solution allows lenders to manage fraud risk effectively by adjusting detection thresholds according to their risk tolerance and automation goals. By providing access to fraud prevention data and analytics, Zest AI enables lenders to quickly flag suspicious applications and protect against emerging threats.

“Addressing application fraud, particularly sophisticated AI-powered fraud, without compromising the member experience is crucial for us,” said Justin Ganadan, EVP at Gather Federal Credit Union. “The insights, accuracy, and end-to-end automation provided by Zest AI have revolutionized our lending operations, and we’re eager to apply that same level of innovation to fraud prevention with Zest Protect.”

Zest AI CEO Mike de Vere noted, “As the banking industry faces an increasing wave of fraud driven by AI tools—capable of generating deepfakes, cloning voices, and more—Zest Protect’s combination of AI-automated underwriting and fraud detection empowers lenders to fund more loans safely and efficiently.”