Application fraud occurs when someone provides false information at the point of origination to gain approval for a financial product or service. section 7.2
Examples include:
- Falsifying income on a loan application. section 7.2
- Misrepresenting risk factors to obtain lower insurance premiums. section 7.2
Figure 7.2 A structured typology of financial fraud. This framework organizes fraud into six primary categories based on the core attack vector, such as exploiting a transaction, compromising an identity, or deceiving a person. This structured view is crucial for developing specific and effective AI-driven countermeasures for each type of threat.
See how application fraud fits among six financial fraud categories organized by attack vector. section 7.2
