TransUnion and Tymit agree fraud prevention partnership

TransUnion has announced that it has partnered with London-based fintech company Tymit to help mitigate fraud risks whilst enabling friction-right experiences for consumers applying for Tymit’s pioneering instalment credit card.

Tymit offers an alternative to traditional credit cards and buy now, pay later offerings and launched the world’s first instalment credit card. However, the credit card service experienced an increase in fraudulent applications, with the most prevalent cases relating to identity theft and impersonation.

Tymit immediately implemented additional controls, including selfie-based document verification, but found that whilst they saw the fraud rate decline, there was a level of additional friction for genuine customers. Tymit asked TransUnion to provide a fraud prevention solution that would deliver the right balance between the two priorities and was tailored to their unique circumstances.

As a result of the partnership with TransUnion, Tymit has said it has seen an almost five-fold reduction in false positive rates (where genuine transactions may be flagged) and been able to identify incremental fraud cases that could have been missed with Tymit’s existing controls.

Chad Reimers, General Manager of Fraud and ID at TransUnion said “We’re proud to have partnered with Tymit to help the organisation improve its fraud prevention and customer experience,”

“In order to support Tymit, we’ve implemented bespoke layered fraud controls based on our award-winning[ii] TruValidate solution, which resulted in reduced friction for 87%i of credit applications without compromising on fraud detection rates.”

Bis Das, VP of Risk at Tymit, said “We are committed to providing our customers with a streamlined experience, financial peace of mind and full control over their spending and repayments. Working with TransUnion has allowed us to do this while also reducing fraud. We are now able to apply our document and selfie controls more effectively to different stages of a customer journey.”