??Weekly Fraud Alert 10.5.23 ??
Point Predictive
Streamlining loan approvals for lenders with machine learning by precisely identifying truthful applications.
Welcome to this week's LinkedIn fraud alert newsletter, your go-to source for the latest updates and insights on fraud trends and threats affecting banks, lenders, and fintech businesses across the US. From synthetic identity, fake employment, false income, and overall financial fraud, the risks are more pervasive than ever before.
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Frank Mckenna Talks Fraud w/ CarDealershipGuy
Our very own Frank McKenna , Co-Founder and Chief Fraud Strategist here at Point Predictive, joined CarDealershipGuy to talk about auto loan fraud. Learn why fraud is on the rise and the new methods fraudsters are utilizing. Click below to watch on Youtube or listen on Spotify. ??
Credit Unions’ Share of Auto is Rising, But Their Risk Profile Is Too
What’s Inside?
This report delves into credit unions' share of the auto lending market and provides insights into the changing credit union risk profile in this space. Here's a snapshot of the report's key findings:
Credit Unions' Growing Share of Auto Lending
Credit unions capture 27% of all auto loan originations in Q4 2022
Decade-long Transformation for Credit Unions
Since 2014, the number of credit unions has been decreasing but their assets under management have more than doubled
Delinquencies Surging
Call report data show that 60-day delinquencies have risen to all-time highs
Hidden Risks are Driving Losses
Key trends that are driving losses and how to spot and mitigate against them
?? Fraudulent Activity Revealed this Week
This week our team of Fraud Analysts using Natural Intelligence alerted lenders?on the additional fraudulent activities that our Fraud Team identify:
Way to go Fraud Fighters!
About AI + NI
At Point Predictive, we use a unique combination of?Artificial and Natural Intelligence [AI+NI] to detect fraud while automating loan decisions. Our team of fraud analysts roots out fraud rings and patterns to alert our clients before they can fund suspicious loans.
Fraud Save of the Week
领英推荐
?? Investigators Pull the Plug on Suspicious Healthcare Company?
This week, Point Predictive investigators uncovered a potential fake employer covering as a Missouri-based home healthcare service after a number of auto loan applications referenced it. ?
Further sleuthing revealed the corporate website, built with Wix's basic template, uses generic graphics and offers little actionable information. Although operational since 2021, its Google business listing and Yelp page show no reviews. Most suspiciously, the purported healthcare company prominently advertises paystubs and other employment verifications on its social media feeds.?
Despite data indicating that it is likely a small enterprise, records show more 20 applicants have reported working for this employer in the past five months, claiming about $1 million in combined income. About 40% of them reported holding a managerial position. The applicants themselves have inconsistent income and employer histories, according to Point Predictive’s proprietary data repository.?
Taken together, these symptoms were enough for investigators to diagnose the applications as likely fraudulent and add the employer to its negative file.?
A great save for our Point Predictive client and a great result for our fraud team!
'To the Point' - The Criminal Fraud Ecosystem
In this bonus episode recorded at the Point Predictive 2023 Auto Lending Fraud Roundtable, Dr. David Maimon, Professor at Georgia State University, examines the intricate supply chain of producers, distributors, and diverse customers engaging in various fraudulent activities.?
Dr. Maimon advocates for incorporating these insights about the criminal ecosystem in order to develop effective prevention strategies. Click below to listen on Spotify or Apple Podcasts!
Download the 2023 Auto Lending Fraud Trends Report
Our Annual Auto Lending Fraud Trends Report is available for?free?download! Filled with hundreds of hours' worth of fraud research and insights, like how 1 in 5 auto loan applications will have material misrepresentation by the borrower?or?the dealer.
If you'd like to learn about the current fraud trends and see more of the data we have uncovered, then download the report today.
Don't miss any of our recent blog posts.
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.
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