Weekly Fraud Alert 9.7.23
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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Download our New Report:
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
A Suspicious Constellation of Activity in the Lone Star State?
This week, Point Predictive noticed a number of loan applications made to a Dallas auto dealer listing the same employer, a credit repair services firm headquartered about 25 miles away. The unlikely grouping was enough to warrant further scrutiny.?
The investigation began on the employer’s website, which consisted of plagiarized text and generic graphics. Social media also yielded little information, as most accounts had been shut down or deleted. Listings on Yelp and Google had received little to no reviews.??
Sources estimate this employer's revenue to be between $189,000 and $222,000, with around four employees on staff. However, Point Predictive’s proprietary data repository shows that 30 individuals claimed to have worked for the business over the past year, reporting more than $1.9 million in combined income. A disproportionate number of these applicants reported a manager title, and many have inconsistent income and employment histories in past applications.?
This case had many markings of a fake employer scam, so the Point Predictive team stepped in to add the employer to its negative file and alerted the dealer of potential fraud.??
A great save for our Point Predictive client and a great result for our fraud team!
领英推荐
'To the Point' - Podcast Episode 7 Release
On this week's episode Mike Periera, Vice President of Lending Operations at MidAtlantic Finance Company, discusses how his organization has structured their fraud prevention strategy around technology and how Point Predictive products in particular have been paramount to their success.?
The conversation also touches on how AI is shaping the future of fraud and how the financial sector must prepare for it.
Read the transcript on our website or click below to listen on Spotify.
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 a free copy.
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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