Bondora is exposed to the risk of fraudulent activity, yes. Its resources, technologies and fraud prevention tools may not be adequate enough to accurately detect and prevent fraud. Bondora’s fraud charge-off totals and its operational results could be materially adversely affected if fraudulent activity were to increase significantly. High profile or significant increases in fraudulent activity could lead to regulatory intervention, negatively impacting its operational results, brand value and reputation.
Bondora has implemented advanced fraud prevention tools. It uses data from electronic channels and the population registry to cross-reference information provided by customers to verify borrower identities.