🚨Weekly Fraud Alert 10.13.23🚨

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.

If you'd prefer to get this directly into your email inbox, sign up for our email newsletter here.

📣 Exciting Updates: Evolving our Fraud Alert Series 📣

We are thrilled to share some upcoming enhancements to our Fraud Alert emails to bring you even greater value!

• New Cadence: Starting this week, our Fraud Alert emails will now be sent every 2 weeks instead of weekly. This change will allow us gather more comprehensive information and provide you with fresh, in-depth insights.
• Refreshed Design: To make your reading experience even more enjoyable, we're working hard to give our email a new look. It's not just about aesthetics - our new layout aims to present information in a clearer and more digestible manner.

Thank you for your continued trust in Point Predictive, and stay vigilant in the fight against fraud!

Download the 2023 Auto Lending Fraud Trends Report

🚨 It’s an alarming statistic: On average in auto lending, 1 in 5 applications will have some form of material income misrepresentation by the borrower or the dealer. Income and employment fraud remains as one of the largest threats in 2023.

When it comes to the income misrepresentation default risk, which income ranges have the highest risk? Are there certain cities that rank higher for this type of fraud? Are there new schemes we should be looking out for?

Get your answers to these questions and much more in our ‘2023 Auto Lending Fraud Trends Report’. Grab your free copy today!

Download the Report

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. ⬇️

🎧 Listen on Spotify

👀 Watch on Youtube

🥸 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 356 Alerts sent to clients on more than $7.6 million in pre-funding applications last week
• Now more than 10,900 distinct suspicious employers identified 
• Added another 86 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

📭 Empty Mailboxes and a Phantom Houston Employer

This week, Point Predictive Investigators noticed a cluster of auto loan applications submitted to the same auto dealer near Houston, all listing the same employer. Although the company has shown up in applications throughout 2023, it recently began to appear exclusively in applications for this dealer.   

Investigators discovered a sparse web presence: The company’s website was little more than a basic Wix template, and its social media pages show no posts or followers. Most strikingly, the company's business address is a mailbox in a long-closed UPS store.   

Sources revealed the employer's revenue to be between $100,000 and $550,000, with about eight employees on staff. However, Point Predictive records indicate more than 20 applicants have claimed to work for this business in 2023, reporting a combined $1.8 million in income. Applicants themselves had inconsistent income and employment histories. 

All of this was enough to flag the applications as potentially fraudulent and to add the employer to the Point Predictive negative file – signed, sealed, delivered. 

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

'To the Point' - Season Finale Release

On this episode of 'To the Point', our VP of Product Justin Davis dives deep into Point Predictive's innovations from our Risk and Innovation Lab.

Discover the latest advancements in battling fraud, the power of the new tools like AutoPass™️, and insights into dealer risk. If you're intrigued by how data and technology are reshaping the fight against lending fraud, this episode is a must-listen. Click below to listen on Spotify or Apple Podcasts!

Listen Now on Spotify

Listen on Apple Podcasts

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

Download the Report

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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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