October Fraud Watch Newsletter
Point Predictive
Streamlining loan approvals for lenders with machine learning by precisely identifying truthful applications.
Welcome to the latest edition of the Fraud Watch Newsletter, designed to keep you at the forefront of the latest fraud prevention strategies and insights.
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Recent News
Point Predictive, the leader in AI solutions for fraud prevention, today announced a strategic partnership with OTTOMOTO? to integrate its advanced fraud detection and income & employment validation solutions into their comprehensive platform.
?SAN DIEGO, CA – November 4, 2024 – Point Predictive, the leader in AI solutions for fraud prevention, today announced a strategic partnership with OTTOMOTO? to integrate its advanced fraud detection and income & employment validation solutions into their comprehensive platform.
Point Predictive Announced as Finalist in US Fintech Awards for LendTech of the Year.
?For the second year running, Point Predictive has been announced as a Finalist for LendTech of the Year. After successfully being named Lendtech of the Year in 2023, we are delighted to have made the shortlist for the second year running.?
Fraud Analyst Discoveries - October
In addition to our AI solutions, our Fraud Analysts conduct investigative reviews to root out fraud patterns and alert our clients. Here are some of their additional discoveries over the last month.
?? Identity Theft Intercepted: How Multiple Red Flags Led to Fraud Prevention
During one recent investigation, the Fraud Team found several anomalies that prompted them to question the legitimacy of the applicant's identity.?The team initially confirmed that the home phone number was not associated with the listed applicant. They then identified an issue with the employer's phone number, which belonged to an individual from another state and not a business. A further investigation of public records showed that the reported employer was not a registered business entity. Finally, past applicant history showed that the type of vehicle on the application differed significantly from the previous vehicles associated with the applicant.?
As a result of this investigation, the lender contacted the true person whose details were used on the application and confirmed that this was an identity theft attempt.
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??? Dealer Fraud Exposed: The Connection Between Four
Suspicious Employers and One Auto Dealer
An investigation centered around a dealer in Houston, Texas identified four businesses listed repeatedly as employers in applications submitted by only that dealer. The businesses had very few reviews and little to no web presence, which typically indicates that they are unlikely to generate enough business to support the quantity of applicants reporting to be employed there. Our proprietary consumer risk data repository shows that these applicants provided inconsistent employers across multiple applications, with some reporting different employers on applications made on the same day. After investigating public records, we found that all four businesses were registered under one of the auto dealer's business owners.
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?? Credit Score Paradox: Some 'Prime' Borrowers Are 4X More Likely to Default
The Fraud Team has been working hard to stay ahead of the fraudsters by developing enhanced alert patterns to help identify more high-risk applications. One recent pattern has identified that applicants with a high credit rating and multiple recent credit inquiries are about four times more likely to default on their loans than the average applicant. The Fraud Team is digging deeper into this paradoxical finding to recommend effective loss prevention strategies to our customers.
Partner Spotlight
White Paper Spotlight
Our latest white paper uncovers the inefficiencies and rising costs of outdated income verification methods, which currently cover a mere 45% of consumers and introduce unnecessary hurdles.
About Point Predictive
Point Predictive powers a new level of lending confidence and speed through artificial intelligence, powerful data insight from our proprietary data repository and decades of risk management expertise. The company's data and technology solutions quickly and accurately identify truthful and untruthful disclosures on loan applications.?
?Are you interested in learning more about how Point Predictive can help your business? Contact Us.