According to a recent LinkedIn post from Zest AI, new research conducted with Celent indicates that 82% of lenders are experiencing rising fraud losses. The post suggests that fraudulent applicants increasingly resemble strong borrowers at the point of origination, complicating traditional risk detection methods.
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The company’s LinkedIn post highlights an upcoming webinar featuring Celent Principal Analyst Craig Focardi and Zest AI’s underwriting and fraud detection product marketer Sean McCarron. The session is positioned as a forum to examine drivers of this fraud shift and how lenders are responding, which may underscore growing demand for advanced analytics and AI-based underwriting tools.
For investors, the emphasis on rising fraud losses points to a structural challenge for lenders that could expand the addressable market for risk analytics and fraud detection solutions. If lenders continue to face elevated fraud pressure, vendors capable of improving risk differentiation at origination may see stronger adoption, potentially benefiting Zest AI’s competitive positioning in credit decisioning technologies.