Credit & Unico Id Cloud

Would you give a loan to someone with a history of fraud?

Would you hire them for a position in your company? Would you sign a contract with that person? These questions, although uncomfortable, reflect an urgent reality that the Mexican financial sector faces every day. In an increasingly digital environment, where business decisions depend on instant validations and automated processes, digital fraud has become a threat that challenges traditional structures of trust. In Mexico, this risk is far from hypothetical: during 2024, cases of digital identity theft grew by 84%, according to the study A Year in Fraud 2024 by Unico Mexico.

Are we really prepared to face this new reality? The answer depends on our ability to adapt, innovate, and adopt solutions that strengthen digital security.

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The real impact of digital fraud on credit

Identity theft and other digital fraud tactics are weakening the trust and profitability of credit in Mexico. According to data from the Bank of Mexico, the non-performing portfolio of consumer loans reached46,343 million pesos in November 2024, representing a 1.9% increase compared to the previous year.

Although this increase partly reflects the economic pressure on consumers, digital fraud is a key factor that cannot be overlooked. Granting credit to those who have already defrauded not only affects financial balances but also compromises trust in the entire system.

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A more sophisticated and harder-to-detect enemy

It is no longer just about stolen data or leaked passwords. Today, threats include deepfakes, bots simulating human behavior, and networks of attackers operating across multiple institutions simultaneously. Some worrying data from Unico Mexico's A Year in Fraud 2024report include:

• 49% increase in the circulation of fake identities.
• 63.2% more attempts per fraudster to infiltrate companies.
• The effectiveness of traditional mechanisms like IP detection or email validation has drastically reduced.

All this is happening at a time when 63% of bank accounts in Latin America are already opened digitally, according to Finnovista, which amplifies the potential for damage and the urgency to act.

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Direct impact on profitability and trust

Digital fraud does not only involve immediate economic losses. It also impacts the relationship with users, team operations, and the long-term health of the business. In Mexico:

• 31% of customers who experience fraud abandon the product or service.
• Fraud in customer origination affects the profitability of banks, fintechs, insurers, and retail companies.
• Operational costs increase with each case, whether due to investigations, compensations, or subsequent technological adjustments.

Furthermore, 78% of identified fraudsters operate across multiple institutions, confirming that isolated protection schemes are insufficient.

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How to avoid granting credit to repeat fraudsters?

In a scenario like this, the question is no longer whether we can afford to be victims of fraud. The right question is: how do we guarantee that those who have already defrauded do not do it again? This problem requires a change of approach. Individual solutions or legacy validation processes are no longer enough. It is necessary to build a collective intelligence: a network of institutions that share warning signals and act in a coordinated manner to prevent risks before they materialize.

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Technology with purpose: Unico Id Cloud

Faced with this challenge, Unico Mexico is driving a solution based on inter-institutional collaboration: Unico Id Cloud, the first network of its kind in the country. It is a platform that allows financial institutions, technology companies, and organizations of all sizes to:

• Share anonymized information about fraud attempts.
• Identify suspicious behavioral patterns.
• Block high-risk profiles in real-time, before they affect other actors in the system.

The result: detection of 70%of repeat fraudsters in Mexico through Unico Id Cloud, according to the A Year in Fraud 2024 report.

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Tangible results for those who participate

More than 50 organizations already make up this network, processing between 1.5 and 2 million transactions monthly. Thanks to joint work:

• 76% of repeat fraudsters are detected.
• Million-dollar savings are achieved through loss prevention.
• Efficiency in key processes such as credit granting, service contracting, and digital identity protection is strengthened.

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Fraud does not discriminate: we are all exposed

One of the great lessons this panorama leaves us is that fraud does not distinguish between large banks, fintech startups, retail companies, or technology platforms. The sophistication of attacks, coupled with the speed of digital operations, makes any institution vulnerable. Therefore, the Unico Id Cloud model proposes a new vision: to protect ourselves together, act as a network, and learn collectively. Only then can we close the gaps that attackers exploit every day.

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Intelligent prevention, sustainable trust

Combating fraud is no longer just a matter of operational security; it is a business strategy. In an increasingly competitive market, having solid and collaborative validation mechanisms is also a reputational advantage. Institutions that adopt solutions like Unico Id Cloud are sending a clear message: they are prepared to protect their users and take an active role in defending the financial system.

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A challenge that demands a collective response

Would you give a loan to someone with a history of fraud? With the right tools, the answer can be a firm and substantiated "no." But achieving this does not rely on technology alone, but on commitment, collaboration, and a preventive vision. Ina world where fraudsters evolve every day, the only way to stay one step ahead is to do it together.

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An innovative solution: Unico Id Cloud

To address this challenge, Unico Mexico has created Unico Id Cloud in the country. It is a pioneering tool that not only detects and blocks repeat fraudsters but also fosters a collaboration network between banks, fintechs, and companies that apply KYC (Know Your Customer) processes.

As Fernando Paulin, CEO of Unico Mexico, explains:

"The answer to the question 'Would you give a loan to someone with a history of fraud?' should be a resounding no. However, ensuring it requires a joint effort. With Unico IdCloud, institutions can share data, detect patterns, and, above all, avoid significant losses for the system."

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How does Unico Id Cloud work?

The model is based on a collaborative and technological approach. The institutions that are part of Unico Id Cloud:

• Share anonymized data about fraud attempts.
• Identify patterns and suspicious behaviors.
• Automatically block high-risk profiles before the damage is repeated.

This ecosystem protects user privacy while allowing anticipation of the movements of the most active fraudsters.

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A collaborative model that is already delivering results

Currently, Unico Id Cloud has more than 50 affiliated financial institutions, which process between 1.5 and 2 million transactions monthly. Thanks to this network, 76% of repeat fraudsters have been detected, generating:

•  Million-dollar savings for companies.
• Significant reduction of non-performing portfolios due to fraudulent causes.
• Greater efficiency in credit granting and contracting processes.

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Technology plus collaboration: the key to financial shielding

Although many institutions have already adopted technological solutions to reduce risk, the collaborative component is what makes the difference. Unico Id Cloud turns every fraud attempt detected by one institution into a useful alert for the others. This model:

• Strengthens prevention in real-time.
• Reduces fraud learning within the system.
• Fosters a culture of mutual protection and shared responsibility.

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Beyond savings: building trust

In addition to the financial benefits, being part of Unico Id Cloud sends a clear message to the market: participating institutions are committed to transparency, security, and trust. In a highly competitive and digitized market, trust is one of the most valuable assets. Having effective fraud prevention mechanisms not only protects the business but also strengthens the relationship with users.

Although digital fraud will continue to evolve, we are no longer defenseless. Tools like Unico Id Cloud demonstrate that it is possible to anticipate the problem, and that collaboration is the best shield against complex threats. The question is no longer whether we can detect fraudsters, but whether we are willing to act together to prevent them. Protecting credit, employment, and commercial relationships in a digital environment is everyone's task.