Trulioo, TransUnion add credit risk intelligence to fortify onboarding and fraud defenses

As financial institutions face mounting pressure to balance rapid onboarding with rigorous risk controls, Trulioo and TransUnion are rolling out advanced credit intelligence tools to meet rising demand. Trulioo has introduced a credit decisioning capability that blends identity verification, fraud detection and credit scoring into a single KYB workflow. Meanwhile, TransUnion is targeting the surge in credit washing with a new detection solution. The launches speak to a wider industry trend toward integrated, data-driven risk assessment. Trulioo has enjoyed rapid progress in the past two years as the Vancouver, Canada-based digital identity company has experienced explosive growth.

Trulioo launches credit decisioning to strengthen KYB and accelerate business onboarding

Identity verification firm Trulioo has launched a new credit decisioning capability aimed at enhancing Know Your Business (KYB) processes by integrating financial, credit and risk intelligence into its global identity platform.

This follows a 102 percent year-over-year increase in the U.S. for KYB transactions, pointing to growing demand for streamlined business onboarding and fraud prevention. Trulioo’s new feature combines identity verification, fraud detection and credit scoring into a unified workflow, enabling enterprises to make faster, more accurate decisions at scale.

Trulioo is layering real-time credit insights into its platform to support risk detection earlier for businesses, improving fraud prevention and accelerating time to revenue. Automated decision trees based on predefined credit rules enable fast approvals, while predictive analytics offer insights into insolvency probability and cash-flow stability.

Embedded scoring tools provide dynamic assessments of creditworthiness, helping enterprises refine risk profiles and reduce exposure. The platform also supports compliance with global regulations, including the EU’s General Data Protection Regulation (GDPR).

“We continue to push the boundaries of innovation, building the most sophisticated engine for onboarding businesses, understanding their risk profiles and driving faster, more confident growth,” says Zac Cohen, Trulioo chief product officer. “With credit decisioning, we’re uniting identity, fraud and credit intelligence to redefine what streamlined, trusted onboarding looks like on a global scale.”

TransUnion unveils fraud detection to tackle credit washing surge

TransUnion has revealed its new fraud detection tool which takes aim at the rise of credit washing, a practice that involves the removal of legitimate and accurate credit data from consumer profiles.

The company’s Credit Washing Solution offers financial institutions a way to detect and address suppressed credit information that can distort risk assessments.

A growing concern in U.S. credit is credit washing. TransUnion estimates that by the end of 2025, approximately five percent of consumers in the U.S. will have had charged-off accounts suppressed for atypical reasons, erasing an estimated $10 billion in debt from credit reports. These suppressions are often linked to consumer disputes, lender practices, credit repair services and debt settlement strategies that can artificially inflate credit scores and misrepresent borrower risk.

According to TransUnion’s data, consumer-initiated charge-off suppressions have surged nearly 700 percent over the past two years, while lender-initiated suppressions have doubled over the past four years. The company warns that such distortions can lead to significant financial losses for lenders as consumers with hidden risk profiles are more likely to default.

“Credit washing continues to be a significant detriment to the credit ecosystem with lenders experiencing great financial loss from consumers whose credit and fraud risk is not accurately represented due to missing credit history,” says Steve Yin, TransUnion’s global head of fraud. “Our credit washing solution helps identify those consumers with hidden risk before they become a financial burden for lenders.”

TransUnion’s research reveals that suppressing derogatory data can elevate a consumer’s credit risk by at least one risk tier, which can shift a profile from subprime to super prime overnight in niche cases. Consumers with atypical suppressions are also three-and-a-half times more likely to default on new accounts within a year compared to those without such activity.

Yin emphasized the distinction between credit washing and legitimate corrections: “It’s important to remember that credit washing is not the same as the removal or correction of inaccurate or illegitimate credit data, an important consumer protection to address genuine issues with a credit report.

“On the other hand, when accurate data is suppressed for the purpose of presenting as a lower-risk borrower, that is a form of credit washing.”

The Credit Washing Solution uses machine learning and advanced analytics to surface hidden risks. It includes a Credit Washing Default Score to flag consumers likely to default, along with algorithms that track changes in charge-offs and hard inquiries across multiple lines of business and time periods.

Initially available as add-ons to TransUnion’s credit and model reports, the solution can be used during prescreening, prequalification, and portfolio reviews. Additional delivery channels and third-party integrations are expected in the coming months.

“Ultimately, this new first-in-class solution empowers lenders to proactively identify and manage credit washing risks, helping them make more informed decisions,” says Jason Laky, executive vice president and head of financial services at TransUnion.

Article Topics

biometrics  |  digital identity  |  financial services  |  fraud prevention  |  onboarding  |  TransUnion  |  Trulioo