Weekly Fraud Alert 7.19.23

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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Get Free Access to the Top 10 Fake Employers List

Would you like to know who the?Top 10 Fake Employers for Q2 2023?were??

At the end of Q2 2023, we had more than 10,100 fake employers in our data repository and many of these fake employers are associated with loans that have 40% to 100% default rates,?with more than?$3.1 billion?in fraudulent loan applications.

If you are a?lender, bank or finance company, we are making our Top 10 Fake Employers list, now updated for Q2, available to you. Click below to request the list.?

Request The List

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:

• Over?135?Alerts sent to clients on more than?$2.9 million?in pre-funding applications last week
• Now more than?10,300?distinct suspicious employers identified?
• Added another?41?synthetic identities to our proprietary data repository last week

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

The Sunshine State Swindlers

This week, our team of fraud analysts identified an unusual concentration of applications from one of our lender customers involving an employer located in Miami, Florida.

An applicant listed this employer in several applications to multiple dealers in the greater Tampa area – 280 miles from the employer’s address. A search of the Point Predictive Consumer Risk Repository revealed a recent surge of applications at two additional Tampa area dealerships from multiple individuals citing the same employer.

The employer appears to be a valid business with a functioning website and an active social media page. However, their services are localized to Miami with no reported locations or activity in Tampa.

External sources indicated the business has between $70,000 - $130,000 in annual revenue with about 5 employees. However, these applicants claimed annual incomes totaling more than $470,000. In addition to these stated incomes, the applicants provided inconsistent employment histories and inaccurate residential information across their multiple applications.

A great save for our Point Predictive client and a great result for our fraud team!

Don't miss any of our recent blog posts.

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Download the 2023 Auto Lending Fraud Trends Report

Our Annual Auto Lending Fraud Trends Report is now available for download! Filled with hundreds of hours' worth of fraud research and insights, you can download the report for free.?

Key findings in this year's report include:

• Up to?1 million?new fraudsters became active in 2020 after economic stimulus programs were launched, with a subsequent shift towards fraudulent vehicle financing.
• The auto lending industry faced over?$8.1 billion?in origination risk exposure in 2022, representing a?$400 million?increase compared to the previous year.
• Synthetic identity and identity theft have increased by?45%?since 2018, with synthetic identity fraud rising by 12% in 2022 alone. The estimated total identity risk for the year reached?$2.3 billion.
• Traditional forms of fraud, such as income, employment, and straw borrower fraud, have decreased in percentage. However, professionals engaging in income and employment fraud are utilizing more sophisticated tactics, including well-hidden fake employers and advanced paystub forgeries.

Download the Report

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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