First-party fraud

First-party fraud is fraud committed by an applicant or account holder using their own identity or account, such as borrowing with no intention to repay. It differs from third-party fraud, where another person uses someone else’s identity or account.

Example

As an illustration, an applicant borrows $10,000 intending not to repay it. The applicant uses their own details, so this is first-party fraud rather than third-party fraud involving someone else’s identity.

On fraud decisioning, a lender can match application fields against its own confirmed-fraud records and let rules use the matches in a decision.