In This Article:
Close to 1 in 4 Thais think it’s OK to deliberately mislead on personal loans, mortgages, auto and other applications.
BANGKOK, September 24, 2024--(BUSINESS WIRE)--FICO (NYSE: FICO):
Highlights
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Two in five Thais (39%) think it’s OK or normal for people to exaggerate their income on loan applications
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One in seven Thais (14%) believe it’s normal for people to deliberately misrepresent their income on mortgage applications
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Falsifying insurance claims is viewed as the most taboo form of fraud, with two in three Thais (68%) believing it is not acceptable
Global analytics software leader FICO today shared its latest global consumer fraud research, which revealed alarming attitudes toward first-party financial fraud both globally and in the Thai market.
The survey finds that while most Thai respondents view the misrepresentation of information while applying for financial products and making insurance claims unacceptable, a sizeable portion of the population feels otherwise.
Two in five Thais think it is normal or acceptable in some cases to misrepresent their income on an application for a bank account (39%), mortgage (39%) or automotive financing (39%). Additionally, two in five (39%) view the exaggeration of income on a personal loan application as normal or acceptable.
These sentiments closely align with global attitudes. The survey reveals that the majority of consumers (56%) firmly reject the idea of exaggerating income on loan applications, viewing it as never acceptable. One in four (24%) consider it permissible in certain circumstances, and one in seven (15%) view it as a normal practice.
"Consumers must understand that misrepresentation of information when applying for financial products can lead to serious consequences, even if done unintentionally," said Aashish Sharma, APAC segment leader for risk lifecycle and decision management at FICO. "Banks can tackle the real problem of ‘liar loans’ by improving their ability to detect inaccuracies, enabling safeguards from bad debt while effectively preventing customers from committing fraud."
More information: https://www.fico.com/en/latest-thinking/ebook/consumer-survey-2023-digital-banking-customer-preferences-and-fraud-controls
Acceptance of Application Fraud Rings Alarm Bells for Lenders
The FICO survey reveals that a quarter of Thai consumers (25%) believe it is acceptable under certain circumstances to lie on mortgage applications, and close to one in five (14%) view it as normal. This comes amid a steady rise in mortgage loan defaults in Thailand, as reported by the National Credit Bureau, highlighting the growing risk assessment challenges faced by Thai financial institutions.