Lending fraud is a complex and ever-evolving issue that affects both lenders and borrowers. With new schemes and tactics constantly emerging, it’s essential to stay informed and vigilant. Point Predictive has developed a comprehensive Lending Fraud Glossary to help you understand and recognize these deceptive practices.   Let’s put your knowledge to the test! See how […] The post Test Your Lending Fraud Knowledge  appeared first on Point Predictive ..read more

Frank Takes is a quick summary of insights and findings from the popular industry blog Frank on Fraud, written by renowned fraud expert Frank McKenna, co-founder and Chief Fraud Strategist at Point Predictive. Artificial Intelligence (AI) is set to enhance existing frauds and scams while also creating unprecedented new ones. Here are eleven scams that AI will supercharge: 1. Deepfake CEO BEC Fraud  Real-time video and audio cloning enable fraudsters to create highly realistic Business Email Compromise (BEC) attacks by deep-faking CEOs and other executives to trick employees into wiring fu ..read more

In recent weeks, the automotive industry has experienced a significant cyber ransom attack, affecting thousands of dealerships across the country. This incident highlights the vulnerability of digital systems and the critical need for comprehensive security measures in today’s interconnected world. As dealerships work to restore their operations and fortify their defenses against future cyber threats, it’s crucial that they broaden their fraud prevention strategies to include other prevalent risks, such as lending fraud.   Lending fraud poses a silent yet substantial threat to dealer ..read more

As interest rates climb and credit tightens, prospective auto loan borrowers are increasingly resorting to fraudulent tactics to secure loans. This alarming trend not only poses significant risks to lenders but also casts a shadow over the entire auto industry. According to recent findings from autoremarketing.com, the Cox Automotive Dealertrack Auto Credit Availability Index has signaled a concerning downturn in credit access for auto loan borrowers. With the Index dropping to 93.0 in January and marking the lowest level since August 2020, it’s evident that securing auto financing has be ..read more

Changing market conditions have revealed an abundance of founder fraud, resident fraud expert Frank McKenna recently wrote in his blog, Frank on Fraud The early 2020s witnessed a remarkable period of expansion in the Fintech sector, characterized by a flurry of investment activity and soaring valuations. This era was marked by a buoyant atmosphere, akin to a celebratory party where optimism abounded, and every startup seemed to achieve unicorn status. However, as the Federal Reserve initiated a series of interest rate hikes beginning in March 2022, the landscape shifted abruptly. The subsequen ..read more

Each year, Point Predictive’s Frank McKenna teams up with Mary Ann Miller, of the identity verification platform Prove, and Karisse Hendrick, of Chargelytics Consulting, to discuss what they anticipate to be the upcoming year’s fraud trends. From tactics to targets, learn what some of the industry’s most prominent experts are thinking about as we enter 2024.  1. ‘Inny’ Fraud Unveiled  A surge in “Inny” perpetrated fraud — fraud perpetrated by or with the help of business insiders — will continue to propagate across various sectors, from banks to online retailers. Insiders recruited t ..read more

For Point Predictive, 2023 was a year of remarkable achievements, reinforcing our status as industry pioneers in the consumer lending technology sector.  LendTech of the Year Award: Setting the Standard  Point Predictive clinched the prestigious LendTech of the Year award at the 2023 US Fintech Awards. This recognition validates the company’s leadership and establishes a new industry benchmark for swift and precise consumer lending decisions. The award reflects Point Predictive’s dedication to transforming automated loan approval while minimizing fraud-related losses.  Groundbre ..read more

More prospective borrowers are resorting to fraud in the face of fewer auto financing options.  Auto financing was harder to come by in November, according to the team over at autoremarketing.com in a recent article (Auto credit tightens in November).   The article referred to the Cox Automotive Dealertrack Auto Credit Availability Index, which accounts for changes in approval rates, subprime shares, yield spreads, and contract details, including term length, negative equity, and down payments, reflects credit access for auto loan borrowers. Shifts in its underlying criteria poi ..read more

A new “Car Gang” is reinventing how car buyers engage in synthetic identity fraud, according to a recent article by Frank on Fraud.  Operating on Telegram and Facebook, the Car Gang offers buyers a convenient way to commit fraud. For a flat fee, they create a synthetic identity that can secure favorable financing. While customers are complicit in and ostensibly aware of the scam, they can take a hands-off approach by outsourcing to these experienced fraudsters.  The group touts its experience using credit privacy numbers (CPNs), a telltale sign of synthetic identity fraud. A CPN is ..read more

Point Predictive’s Chief Fraud Strategist Frank McKenna recently penned a commentary piece for Auto Remarketing, a periodical covering the pre-owned auto industry. In it, he discusses the rise of shell companies and fake employer scams and how Point Predictive’s approach can combat them. Fake employers have become an increasingly vexing problem for financial institutions and other lenders, Frank writes. While some “fake employers” are legitimate companies who become unwitting accomplices in a fraudster’s scheme, others are complete fabrications. Unscrupulous scammers invent these employers, so ..read more