First Party Fraud
From Open Risk Manual
Revision as of 13:42, 11 May 2017 by Wiki admin (talk | contribs) (Created page with "== Definition == "First Party Fraud" means a fraud that is committed by an individual or group of individuals on their own account with no intention of any repayment of the lo...")
Definition
"First Party Fraud" means a fraud that is committed by an individual or group of individuals on their own account with no intention of any repayment of the loss caused.[1]
Lending Context
A first party fraud generally occurs when the party misrepresents its financial abilities on the application forms and by using another person's identifying information. Any fraud which is initiated at a later stage of the lifecycle of a credit product, such as the misstatement of financial reports, even when it is used to prolong or to extend an existing credit product does not fall within this definition
References
- ↑ EBA/CP/2014/08
