TransUnion launches fraud scores with adverse action capability

TransUnion (NYSE: TRU) announced the launch of its Credit Washing and Synthetic Fraud Scores with adverse action capability, which the company claims are the first such solutions of their kind in the market.

The scores are designed to help lenders identify risks associated with synthetic identities and credit washing under the Fair Credit Reporting Act (FCRA), allowing organizations to provide consumers with reason codes explaining credit denials — a capability TransUnion says was not previously available in this context.

According to TransUnion research, total lender exposure to synthetic identity fraud stood at $2.4 billion as of June 2026. The company's analysis also found that consumers whose charge-offs were suppressed through credit washing are 3.5 times more likely to charge off a new account within a year of opening it, with super prime consumers 10 times more likely.

"By bringing advanced fraud intelligence into explainable, FCRA-governed decisioning, we're helping organizations uncover threats that might otherwise go undetected, make more confident decisions, and mitigate potential financial losses," said James Garvert, executive vice president of global fraud and communications solutions at TransUnion.

Oscilar, a risk platform serving more than 100 financial institutions, is the first platform to integrate the new scores. Within Oscilar's workflow, the scores and their reason codes run alongside credit decisioning, enabling lenders to act on synthetic identity and credit washing risk at account opening and reference it in adverse action notices.

"A fraud score only pays off if the lender can act on it," said Neha Narkhede, co-founder and CEO of Oscilar. "TransUnion's adverse-actionable scores give lenders a reason they can cite, and Oscilar puts that reason on the same decision and notice as the credit reasons."

The announcement was made based on information provided in a TransUnion press release dated October 20, 2026.

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