CIBIL and TransUnion launch CIBIL Detect

India’s first Repository for Fraud and High-Risk Activity Information

Delhi, July 7, 2010: To address the need for better collaboration and the sharing of information  on fraud and high-risk activities throughout the banking and financial industry, Credit Information Bureau (India) Limited and TransUnion today announced the launch of CIBIL Detect - a nationwide database of reported fraudulent and suspect activities.

CIBIL Detect is the first, centralized repository in India on confirmed frauds, cases of misuse or attempted misuse of data and suspected or high-risk cases that are under investigation in banks and financial institutions.  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.

In addition to reported fraudulent and suspicious activities, CIBIL Detect also contains valuable information on high-risk vendors and agents which credit grantors can share and access. This repository will be a comprehensive, reliable, up-to-date, centralized point of reference on the high-risk incidents in the credit sector for India. It will also keep a track of the modus operandi of individuals who have committed banking-related frauds in the past.

Speaking at the launch, Mr. Arun Thukral, Managing Director, CIBIL said “Banks and financial institutions have been reporting rising cases of frauds and spurious incidences. Realizing the urgent requirement of an industry-wide system for fraud control, the Indian Banks’ Association (IBA) entrusted CIBIL and TransUnion to develop an exhaustive repository of information on spurious activities that will not only capture the methods used to commit fraud, but can also indicate whether the person or organization was a victim of fraud or was involved in it.”

While delivering the keynote address at the conference, Mr. K Unnikrishnan, Deputy Chief Executive, Indian Banks’ Association (IBA) said, “Increasing number of frauds in banks in recent years is a matter of great concern. Anywhere, anytime banking facilities make it easier for fraudsters to remain faceless and siphon funds out of the system much faster than ever. As fraudsters move from one bank to another to avoid detection, we had thought of  creating a data base on frauds to serve as due diligence tool for banks before establishing business relationship with new customers. As more and more banks start reporting fraud data to CIBIL, the data base would become larger and more useful to the banking system. I am confident this IBA backed initiative from CIBIL will serve public interest in a meaningful manner.”   

CIBIL Detect has been designed to help at both an organizational as well as an industry level. At an organizational level, it will act as a comprehensive nationwide repository that can be used to check if the business prospect has been involved in any spurious activity. On an industry level, CIBIL Detect will fuel the regulatory body’s efforts towards creating a healthy and sound credit culture by effectively identifying, recording and sharing information on high-risk activities.

“CIBIL Detect is bringing speed and confidence to risk management decisions taken by lending institutions and improving their overall portfolio quality. It will also pave the way for economic development by inculcating greater financial discipline, provide better control on high-risk activities and help disciplined and deserving consumers gain access to the credit they deserve,” added Mr. Thukral.