History shows that prosper does NOT detect identity fraud.
Not only do that they not detect it, they also strenously avoid being notified of it. It wasn't until there was a major uprising in the old .com forums that they did anything about the Lep NYC identify theft situation, even though he had been reporting it to them for months, including giving them the phone number of the NYC detective handling the case.
That incident was what led me to initially stop bidding.