Cibil to launch mortgage default database

Banks may now find it easier to identify fraudsters while entering into businesses tied with new clients. Credit Information Bureau (India) Ltd (Cibil) on Wednesday launched a centralised database of reported fraudulent and suspected activities. Cibil Detect is the first repository in India which will tell banks whether a person or an organisation was a victim of a fraud or was involved in such an act in the past.

The database, launched in collaboration with Chicago-based credit information company TransUnion, will give data on confirmed frauds or cases of misuse which are being investigated in banks and financial institutions. It will also contain information on high-risk vendors and agents. It will keep a track of the modus operandi of individuals who have committed banking related frauds in the past.

 

“The solution is actively addressing an industry concern at a time when lending institutions are facing increases in write-offs and bad debt, many of which can be attributed to fraudulent activities,” said Cibil Managing Director Arun Thukral.

Banks will be able to check for cases of fraud by using various search parameters such as name, address, telephone and fax number of the customer. The data will be available to 200 members of Cibil, which include banks, financial institutions, non-banking finance companies and housing finance companies.

With most banks providing anywhere, anytime banking facility to their customers, the number of frauds has risen sharply in the recent years.

Cibil will also come out with a database on mortgage defaulters and customers of micro-finance institutions. It is looking at providing data to telecom and insurance companies also to help them retain customers.