SEATTLE — Ally Financial is using robotic process automation (RPA) and artificial intelligence (AI) to identify the fraudulent paystubs commonly used in conjunction with synthetic identities.  

The lender is leveraging the automations to combat mounting fraud losses, Kevin Faragher, senior director of product and strategy at Ally Financial, said during the Monday panel discussion “Automation to Detect and Stop Fraudulent Transactions” at Bank Automation Summit Fall 2022 in Seattle.

Ally uses RPA to comb through applicants’ deposit records to identify inconsistencies in reported income, Faragher said. “If you’re going to have a synthetic identity, you’ve got to have a paystub to support that synthetic identity.” 

With identity fraud on the rise, Ally is partnering with tech company Informed.IQ to seek out fraudulent paystubs, Faragher said. San Francisco-based, Informed.IQ allows financial institutions to instantly verify a consumer’s income, assets, residence and other data included in the loan packet to help detect fake credit profiles, according to the company’s website.