Fighting Identity Theft in the Era of Social Networks
Identity verification is a critical fraud prevention tool used by banks, credit card companies and other lenders. Lending Club has recently begun to leverage the information available on social networks to help confirm a potential member’s identity.
We continue to rely on methods of identity verification used by traditional lenders, but in an era of online identity theft, Lending Club is continually redefining industry best practices.
We cannot disclose our exact methodology, practices, or sources of information, as this could simply empower the fraudsters we are trying to disarm. But what we can say is that we use information gathered from social networks to help give us more confidence that a member is in fact who they say they are.
When we do find a case of identity theft, we work with the true owner of the identify and law enforcement authorities to track down and prosecute anyone who has committed identity theft. In addition, we will reimburse lenders for the unpaid principal balance of loans where we have confirmed that the borrower has committed identity theft.
As a financial services innovator, Lending Club is constantly assessing new methods to better secure our platform. Identity confirmation measures are simply a next step in the evolution of financial services.
Our member’s privacy is our top concern.
Image courtesy of scansnap