TransUnion (NYSE: TRU) today announced the launch of its Credit Washing and Synthetic Fraud Scores with adverse action capability. These are the first-ever adverse-actionable solutions of their kind in the market, helping organizations identify and manage risks associated with synthetic identities and credit washing while supporting FCRA-governed, consumer-permissioned decisions.
The scores allow lenders to make more informed credit decisions and provide consumers with applicable adverse-action reason codes explaining why they were denied credit—capabilities that were not previously available.
Synthetic identity fraud and credit washing remain among the fastest-growing and most costly forms of financial crime. TransUnion research estimates total lender exposure to synthetic identity fraud at $2.4 billion as of June 2026.
By combining real and fabricated identity elements to create seemingly legitimate consumer profiles, fraudsters can evade traditional detection methods, establish accounts and generate substantial losses.
TransUnion analysis shows 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 10x more likely. As schemes become more sophisticated, organizations need effective and explainable tools to identify high-risk applications before losses occur.
TRU shares sparked $3.81, or 5.2%, to $76.94.
