From fraud detection trends to business impact: Why ADV-120 matters now.
Mortgage lenders have always needed to answer two critical questions: Can this borrower repay the loan? And how likely are they to do so?
Today, a third question deserves just as much attention:
Is this borrower who they claim to be?
As fraud tactics become more sophisticated, lenders need to look beyond traditional creditworthiness assessments to better understand applicant identity and potential fraud risk.
That's where ADV-120 from Birchwood Credit Services comes in. By analyzing identity information associated with a consumer's credit file, ADV-120 helps lenders identify potential inconsistencies, recognize fraud risk indicators, and determine when additional verification may be appropriate.
Fraud prevention is becoming an increasingly important priority across financial services.
According to the Global Fraud Detection and Prevention Market: Industry Intelligence Report 2026–2031, the worldwide fraud detection and prevention market is projected to grow from approximately $32 billion in 2025 to $80 billion by 2031.
The report identifies several factors contributing to this growth, including sophisticated AI-enabled fraud, synthetic identities, real-time payments, and greater regulatory scrutiny.
Financial institutions are responding by investing in capabilities such as:
For mortgage lenders, these trends reinforce the importance of identifying potential fraud concerns early, before they create additional complications during underwriting, approval, or funding.
Source: Research and Markets — Global Fraud Detection and Prevention Market.
A traditional credit report provides valuable insight into a borrower's financial history, outstanding obligations, and repayment behavior.
However, evaluating creditworthiness is not the same as validating identity.
An applicant may present a credit profile that appears reasonable while other identity-related information contains inconsistencies that warrant further investigation.
These concerns may involve address history, identifying information, contact details, or relationships among different elements of the consumer's credit file.
A more complete lending risk assessment considers not only the borrower's ability and likelihood to repay, but also whether the applicant's identity information is consistent and credible.
ADV-120 derives its fraud and identity intelligence from information contained within and associated with the consumer's credit file.
Rather than relying on a single identifying detail, the solution analyzes relationships among multiple identity elements, including:
ADV-120 evaluates the consistency, longevity, and interconnectedness of these data points to identify patterns that may indicate identity anomalies, synthetic identity risk, or other potentially fraudulent activity.
By combining bureau-sourced identity data with proprietary fraud analytics, ADV-120 can help uncover discrepancies that may not be apparent through a traditional credit review alone.
For lenders, this means additional context for assessing identity risk—not simply another credit score.
Identifying a potential fraud concern is only the first step. What matters is how lenders respond to that information.
When ADV-120 identifies elevated fraud or identity risk indicators, lenders can use those findings to trigger enhanced due diligence rather than automatically declining an application.
Depending on the nature of the concern and the lender's policies, additional verification may include:
Confirm income or employment information directly with the appropriate source when application details require further review.
Obtain supporting identification or documentation to help resolve discrepancies in applicant information.
Review address history, occupancy details, or other information to determine whether the application is consistent with available records.
Take additional steps to confirm phone or email ownership when contact information raises questions.
Have an experienced team member review the application and supporting documentation to determine whether the information is consistent, reasonable, and independently supported.
The goal is to investigate meaningful risk indicators and resolve legitimate questions—not to create unnecessary obstacles for every applicant.
Not every application requires the same level of scrutiny.
One of the practical advantages of ADV-120 is the ability to use its findings to help prioritize applications that may benefit from secondary review.
When identity information appears consistent, lenders can follow their established processes. When elevated risk indicators are present, those applications can receive additional attention.
This risk-based approach can help lending organizations:
ADV-120 does not replace lender judgment or established verification requirements. It provides additional information that can help teams determine when further investigation is warranted.
Birchwood offers solutions that support different parts of the lending decision.
| Birchwood Solution | Primary Purpose |
|---|---|
| Credit Reports | Evaluate borrower creditworthiness |
| FICO and VantageScore Options | Support credit risk assessment |
| Income and Employment Verification | Validate financial information |
| ADV-120 | Identify potential identity inconsistencies and fraud risk indicators |
| Mortgage Lending Integrations | Support lending workflows |
Together, these capabilities help lenders address three important questions:
Can this borrower pay?
Income and employment verification can help support an assessment of the borrower's financial capacity.
Will this borrower pay?
Credit history and scoring models can help lenders evaluate repayment risk.
Is this borrower who they claim to be?
ADV-120 can help lenders examine identity-related information, identify potential inconsistencies, and determine whether additional verification is needed.
A comprehensive lending risk strategy considers all three.
As fraud tactics evolve, lenders need tools that help them recognize potential concerns before they become larger operational or financial problems.
ADV-120 supports a proactive approach by examining relationships among identity data points, identifying possible anomalies, and providing information lenders can use to guide enhanced due diligence.
Its value is not simply in flagging potential risk. It's in helping lenders understand where additional verification may be needed and direct their review resources accordingly.
For mortgage professionals, that can mean a more informed, consistent approach to evaluating identity-related concerns while maintaining an efficient lending experience.
Fraud prevention is about more than detecting suspicious activity. It's about giving lending teams the information they need to make confident, well-supported decisions.
By combining credit reporting with identity intelligence and fraud analytics, Birchwood helps lenders take a more comprehensive approach to applicant risk.
ADV-120 helps lenders verify more than credit—identifying potential identity concerns, supporting enhanced due diligence, and helping teams focus attention where it matters most.
Interested in learning how ADV-120 can complement your existing Birchwood solutions?
Connect With Birchwood Credit Services →
Or call 800.910.0015 to speak with our team.
Industry reference: Global Fraud Detection and Prevention Market: Industry Intelligence Report 2026–2031, Research and Markets. Market projections are third-party estimates and are not specific performance forecasts for ADV-120.
ADV-120 findings are intended to support fraud risk assessment and appropriate verification processes. Lenders should apply their own policies and applicable regulatory requirements when reviewing applications.