Point Predictive Analysts Help Lenders and Auto Dealerships Stay Ahead of Fraud
Point Predictive Blog
by Joniece Loya
1w ago
Point Predictive artificial intelligence-based technology solutions help lenders and automotive dealerships identify suspicious, high-risk loan applicants, but we don’t stop there. Since our founding, we have focused on combining the power of artificial intelligence and machine learning with in-depth analysis provided by our experienced analyst team. Every day, our analysts are reviewing loan applications and data from the Point Predictive data consortium to identify and alert lenders and dealers to the latest trends in fraud attempts. Our analyst team collaborates with our clients to ensure t ..read more
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Revisiting the Boldest Dealer Fraud Scheme in Recent History
Point Predictive Blog
by Samantha Blunck
2M ago
By Jay Anderson Taking a trip back to just before the pandemic, there was a news story that stood out to me that was quickly lost in the shuffle of Coronavirus news. A home-grown fraud ring based in Georgia discovered that it was easier to make money getting lenders to fund fake loans than it was to actually sell cars. What was the scheme? Two associates developed a plan to separate auto lenders, primarily credit unions, from their cash without selling anything. They set up several fake companies posing as car dealerships under names such as “Premier Luxury Motors,” “Platinum Motors Auto Sales ..read more
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A Christmas Story
Point Predictive Blog
by Samantha Blunck
2M ago
By Jay Anderson According to the 2022 Annual Fraud Report, income misrepresentation was responsible for more than $1.8 billion in loss exposure for automotive lenders in 2021. Twenty-nine lenders were surveyed as part of the development of the Fraud Report. Respondents indicated that income misrepresentation was their When Disney launched its streaming service, Disney+, I decided to purchase a subscription as a family Christmas gift. I came across the Simpsons while looking for something mindless to watch while I worked out in the mornings and started all the way back at Season 1 Episode 1. Ap ..read more
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Fake Pay Stubs: Easy to make; cost lenders millions
Point Predictive Blog
by Samantha Blunck
2M ago
By Justin Hochmuth, Fraud Consultant According to the 2022 Annual Fraud Report, income misrepresentation was responsible for more than $1.8 billion in loss exposure for automotive lenders in 2021. Twenty-nine lenders were surveyed as part of the development of the Fraud Report. Respondents indicated that income misrepresentation was their leading concern related to fraud types. Fake pay stubs are a growing threat to lenders. Advances in technology make them readily available and inexpensive to obtain. While many times fake pay stubs are related to fake employers, other times the applicant has ..read more
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Ghost of The Past: Could we see another mortgage crisis like 2008 next year?
Point Predictive Blog
by Samantha Blunck
2M ago
By Jay Anderson, VP of Product Delivery The subprime mortgage crisis that occurred between 2007 and 2010 left a lasting impression on the financial system nationwide. While it wasn’t as broadly devastating as the Great Depression, it was one of the rockier economic periods in many of our lifetimes. The pain felt during the collapse of the housing market not only decimated many lenders, banks, and wall street players, but also left a scar on Main Street, with record numbers of home foreclosures and strategic defaults.  Learnings from the most recent mortgage crisis are well documented ..read more
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The Lake Mead Effect In The Current Mortgage Lending Environment
Point Predictive Blog
by Samantha Blunck
2M ago
By Neal Shinkle, Fraud Consultant Mortgage Lending In a Time of Evaporating Volume By now we’ve all seen the pictures. Unnerving images of the mountains rising above Lake Mead, stained with reminders of water levels from years-gone-by. The historically low marks cause obvious concerns…fewer folks using the lake for recreation, a reduction in drinking water and agricultural irrigation, and the recent exposing of disturbing remains. Perhaps most concerning is the possibility of the lake reaching ‘deadpool’ status. Deadpool occurs when the level of water is so low that it would no longer be able ..read more
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Beyond Identity and Credit Risk: 12 Billion Unique Consumer Risk Insights
Point Predictive Blog
by Samantha Blunck
2M ago
Consumer credit, whether loans, lines of credit, credit cards, mortgages, or buy-now-pay-later applications is a competitive and complex business. Well-qualified borrowers have many options available to them. They demand a fast and easy experience. Lenders need to be able to respond to these demands while protecting themselves and their shareholders from borrowers who will prove unprofitable. There are dozens of credit risk management solutions, including custom credit risk models, used by lenders to assess the likelihood that a particular borrower will meet the terms of the repayment agreemen ..read more
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Recycling Employers On Applications Can Point To Systematic Fraud
Point Predictive Blog
by Samantha Blunck
2M ago
By Justin Hochmuth, Fraud Consultant It’s common knowledge that borrowers who misrepresent their income, use fake employers, or supply forged paystubs are significant threats to auto lenders and car dealerships alike. This type of fraud is nothing new to the auto lending industry. However, what if the fraud isn’t being committed by the borrower and instead is committed by one or more employees of the dealership? In a recent Point Predictive survey, auto lenders reported that about half of all income and employment misrepresentations may be conducted by the dealership, not the borrower. The iss ..read more
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Fraud for Need vs. Fraud for Greed
Point Predictive Blog
by Samantha Blunck
2M ago
Synthetic identities have been all the talk from a fraud risk perspective for lenders for decades , but not all synthetic identities result in losses for lenders. It begs the question, why would someone create a synthetic identity to finance a car when they have every intention of paying the loan as agreed? That question brings us to the topic of fraud for need versus fraud for greed. There are different types of synthetic identities and different levels of risk associated with them. Unfortunately, just knowing that an identity is synthetic, while posing greater risk than true borrower identit ..read more
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6 Ways To Use the FCRA-Compliant AutoPass Score To Increase Your Auto Loan Automation
Point Predictive Blog
by Samantha Blunck
2M ago
Lisa Verdon, Senior Fraud Consultant Point Predictive provides insight into auto lending fraud risk through the combination of a unique data consortium and artificial intelligence (AI)-powered models. These insights are delivered through a real-time solution called Auto Fraud Manager (AFM). Key definitions in the Fair Credit Reporting Act (FCRA) limit the use of the AFM score; while it can be used to reduce stipulations and direct underwriting activities, it cannot be used to make credit decisions. With the introduction of AutoPass, an FCRA-compliant, application-level fraud score, that has ch ..read more
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