New research shows that on an average day, about 4.5% of people who take an unsecured personal loan go back for seconds at other lenders later that day. “Loan stacking,” is problematic as borrowers who take out a second loan within 15 days are 4x as likely to be later identified as fraudsters. A 3rd loan makes borrowers 10 x as likely to be frauds.
Silicon Valley banking upstarts have technology for almost everything, but they’re still trying to catch up with thieves posing as their customers. New research shows that on an average day, about 4.5% of people who take an unsecured personal loan go back for seconds at other lenders later that day. The behavior, called “loan stacking,” more than doubled from 2013 to 2015, according to research from credit-reporting firm...
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