Financial services
Document fraud detection for KYC and loan underwriting
KYC onboarding and underwriting run on the documents fraudsters fake best: paystubs, bank statements, and IDs. Detectory renders a forensic verdict on every uploaded document and resolves the synthetic identities behind them, before the account opens or the loan funds.
The problem
Synthetic identity is the fastest-growing financial crime in the US
Synthetic identity fraud drives an estimated $6B+ in annual lender losses, and generative tools have made fake paystubs and bank statements a commodity: template farms sell "verified income packages" for under $50. Manual document review in onboarding and underwriting can’t keep pace, and every fake that clears KYC becomes a charge-off, a SAR filing, and a regulator conversation later.
$6B+
annual synthetic-identity lender losses
Federal Reserve estimate
<$50
street price of a fake income package
fraud marketplace monitoring
85%
of synthetics pass traditional KYC checks
industry studies
Example verdicts
The documents your team sees, scored
Representative documents from this workflow with the forensic verdict Detectory renders and the finding behind it. Suspect documents are never auto-denied; they route to your reviewers with the evidence itemized.
Bank statement (underwriting)
Three months of statements supporting a loan application
Finding: Running balance does not reconcile across pages; font substitution on deposit lines; PDF assembled from two source documents
Paystub (income verification)
Gusto-format stub in a personal-loan file
Finding: Template matches a known stub-generator service; employer domain registered 11 days before application
Driver license (KYC)
Government ID for account onboarding
Finding: Barcode, MRZ-equivalent data, and security-feature geometry consistent; cleared in 6 seconds
W-2 (mortgage file)
Prior-year W-2 supporting stated income
Finding: Arithmetic valid but employer EIN newly issued and address is a virtual office; routed to underwriter with findings
What Detectory does here
Purpose-built detection for this workflow
Onboarding document verdicts
Genuine-or-fraudulent calls on IDs, paystubs, and statements in seconds, inline with your KYC flow, so good customers are not slowed down.
Synthetic-identity detection
Identity-fragment analysis catches synthetics assembled from real SSNs and invented biographical data that pass bureau-based checks.
Fraud-ring clustering
Shared templates, devices, and employer artifacts across applications expose organized first-party and bust-out rings.
SAR-ready evidence trails
Every verdict carries an itemized, timestamped evidence chain your BSA/AML team can lift directly into SAR narratives and exams.
Case walkthrough
A bust-out ring warms up 40 accounts
Over three months, a ring opens checking accounts and small credit lines using synthetic identities backed by generated paystubs. Each application passes bureau checks. Detectory flags the shared stub template and a common employer EIN across 40 files, clusters the device fingerprints, and scores every new application from the ring at submission.
Outcome: The fraud team freezes the cluster before the coordinated bust-out, and the BSA team files SARs with the full documentary evidence chain attached.
Run your last quarter’s confirmed-fraud files through Detectory and see what it catches.
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