Zest AI is offering another fraud-fighting tool for credit providers.

On Wednesday, the technology provider fueled by artificial intelligence rolled out Zest Protect which is designed to identify fraudulent activity during the decisioning process, helping credit unions, banks and other finance companies navigate the rising application fraud environment while safeguarding the consumer experience.

Zest Protect has been piloted with select Zest AI’s credit union customers, according to a news release.

“Lenders need to outsmart fraud, including an increasing volume of AI-driven fraud in the industry, with AI,” Zest AI head of strategy and client success Adam Kleinman said.

“Our team designed Zest Protect to create an efficient tool that can more accurately detect all types of fraud now and in the future, including AI-created fraud, with the ultimate goal of boosting lending confidence for our bank and credit union customers,” Kleinman continued.

Zest Protect leverages Zest AI’s machine learning technology to detect first- and third-party fraud, as well as flag income inconsistencies within the automated decisioning process.

The company highlighted this integrated solution can empower credit providers to take control of their fraud risk, allowing them to adjust specific detection thresholds based on their risk tolerances and automation objectives.

With access to fraud prevention data and analytics, Zest AI said it can flag applications swiftly and protect against emerging threats.

“Capturing application fraud, especially more sophisticated AI-powered fraud, without compromising the member experience is a top priority for us,” Gather Federal Credit Union executive vice president Justin Ganaden said in the news release from Zest AI.

“The insights, accuracy and end to end automation we have experienced with Zest AI technology has transformed our lending business. We’re excited to bring that same level of innovation and intellectual rigor to fraud prevention with Zest Protect,” Ganaden continued.

Zest AI recapped that the Federal Trade Commission estimates that consumer fraud losses in 2023 exceeded $10 billion while credit unions and community banks reported a 69% surge in fraud cases across consumer accounts.

“The banking industry is bracing for an onslaught of fraud as AI tools become more ubiquitous, making it easier to generate deepfakes, clone voices and otherwise defraud people and businesses,” Zest AI CEO Mike de Vere said.

“Now with a combination of AI-automated underwriting technology and fraud detection, we can enable lenders to safely and efficiently fund more loans,” de Vere went on to say.

For more information about the availability of Zest Protect, contact the company via this website.