Newly released TransUnion data found that as personal loan delinquency rates rise, online fraud, which includes loan stacking, continues to make significant contributions to these increases.  Serious delinquency rates (90+ days past due) at the conclusion of 2016 for personal loans originated in 2015 rose to 6.22%, up nearly 3% from the year-end 2015 delinquency rate of 6.05% for loans originated in 2014.*

Serious delinquency rates (90+ days past due) for personal loans with characteristics of online fraud stood at 11.02% at the end of 2016 for loans originated in 2015. Online fraud includes fraudulent loan stacking, which involves attempting to secure multiple loans from one or more lenders within a short period of time. While down from the 11.81% rate at the conclusion of 2015 for loans originated in 2014, it represents even more borrowers because of the continued growth in the personal loan space.

Number of Consumers with Personal Loans Continues to Rise

2014      12,67 million

2015      14.36 million

2016      15.82 million

Fraud Prevention Exchange Benefits

The Exchange leverages the power of collective data and helps lenders face challenges brought on by originations fraud, including synthetic identity and loan stacking. Rapid information sharing among Exchange members is paramount in the battle against online fraud. With TransUnion’s Fraud Prevention Exchange, lenders can utilize collective data to strengthen existing risk systems. The Exchange enables lenders to:

  • Reduce fraud losses without impacting the consumer experience and lending timelines.
  • Receive real-time alerts (within seconds) to mitigate instances where lenders don’t discover problematic accounts until days or weeks have passed and losses may have been incubating unknowingly inside live loans.
  • Utilize TransUnion’s vast network of customers inside and outside of the Exchange for more insight into originations fraud.
  • Quickly adjust and adapt to evolving fraud threats and trends.

To learn more about TransUnion Fraud Prevention Exchange please visit

*TransUnion measured serious personal loan delinquency rates for loans that were 12 months on book at both the conclusions of 2015 and 2016.

Source: TransUnion Press Release