Trust Science Acquires Lenders API for Fraud Prevention

Trust Science has significantly expanded its fraud detection capabilities by acquiring Lenders API, a collaborative platform designed to combat sophisticated lending fraud across Canada. This strategic move integrates Lenders API's real-time, consortium-based fraud prevention technology into Trust Science's existing AI-driven risk and decisioning infrastructure, aiming to create a more robust and scalable anti-fraud network for Canadian financial institutions.

The acquisition, announced on February 10, 2026, brings together two key players in the Canadian fintech space. Trust Science, recognized as Canada's Credit Bureau 2.0, leverages alternative data, cashflow analytics, and consortium insights to provide comprehensive risk assessment solutions. Lenders API, co-founded by Tal Schwartz and Gary Schwartz in partnership with the Canadian Lenders Association (CLA), specializes in detecting coordinated fraudulent activities without compromising proprietary customer data among its members. The financial terms of the transaction were not disclosed.

Lenders API's core strength lies in its ability to identify and prevent complex fraud schemes that often evade traditional detection methods. These include loan stacking, where borrowers obtain multiple loans simultaneously using the same collateral; bust-out fraud, involving organized groups securing loans with no intention of repayment; and synthetic identity fraud, which utilizes fabricated personal information to defraud lenders. The platform's consortium model ensures that early detection by one member inadvertently protects others, creating a collective defense against increasingly organized criminal activity.

This integration is particularly timely given the escalating sophistication of financial crime. The Canadian lending market, like others globally, faces persistent threats from fraudsters. By combining Lenders API's specialized consortium data with Trust Science's advanced AI and decisioning tools, the enlarged entity is positioned to offer a more comprehensive and proactive defense. This synergy is expected to enhance the security and integrity of lending operations for a wider array of regulated financial institutions operating within Canada.

Evan Chrapko, CEO of Trust Science, emphasized the acquisition's alignment with the company's mission to deliver transparent, explainable, and compliant risk management solutions. The integration is designed to facilitate broader adoption by regulated entities, ensuring adherence to stringent privacy and regulatory standards prevalent in the Canadian financial sector. This focus on compliance is crucial for building trust and ensuring the long-term viability of such collaborative fraud prevention initiatives.

The move by Trust Science underscores a broader trend in the fintech industry towards consolidation and the development of integrated solutions for complex challenges like fraud prevention. As fraudsters become more adept at exploiting system vulnerabilities, platforms that can aggregate data and share insights securely are becoming indispensable. The acquisition of Lenders API by Trust Science represents a significant step in fortifying Canada's financial ecosystem against evolving threats, offering a more unified and intelligent approach to safeguarding lenders and consumers alike.