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Auto Fraud Panel IDs Top Concerns

By Staff Writer June 13, 2019

Lenders identified their three biggest fraud concerns in 2019: credit washing, synthetic identity via Credit Protection Numbers, and fraud by dealers resulting in higher levels of first and early payment default, while at the fourth Auto Lending Fraud Roundtable sponsored by PointPredictive.

More than 50 attendees from 21 lending organizations, including five of the top 10 auto lenders, joined PointPredictive partners including defi SOLUTIONS and Digital Matrix Systems to discuss rising fraud trends and to collaborate on how to best address those issues from an industry perspective.

“Synthetic identity is being driven largely by unscrupulous credit repair companies that are convincing ordinary people to commit criminal acts,” said Sergeant Darren Schlosser, head of the Houston Police Department Auto Theft Division Vehicle Fraud Unit.

At the roundtable, Frank McKenna, chief fraud strategist at PointPredictive, provided insight into fraud trends by presenting results from analysis conducted on more than 70 million historical auto loan applications.

“The focus on both first- and third-party fraud, and not just identity theft, helps the auto lending industry target all the fraud we experience including income misrepresentation, dealer fraud, straw borrower and fraud ring activity,” said Jorge Arenado, AVP of originations at Westlake Financial.

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Last modified on Tuesday, 18 June 2019 13:27

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