Weekly Fraud Alert 9.21.23
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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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
Predictors Shed Light on a Sunshine State Phantom Employer
This week, Point Predictive investigators picked up on a number of applications made to a Miami auto dealer that all listed the same employer phone number.
Some initial sleuthing uncovered that an unrelated enterprise currently occupies the employer’s Delray Beach, FL, address. The business does not have a website or much else in the way of an online presence. The only apparent reference to the phone number is a Yelp page, which has no ratings or reviews.
Additionally, the employer shows up as inactive in Florida's business registry. Despite an apparent lack of business activity, records show applicants claiming to work for this business reported $1.8 million in combined income in 2021 and 2022. Those applicants also have no reported mortgage or auto tradelines.
In what amounted to a fairly open-and-shut case, the Point Predictive team flagged the applications as potentially fraudulent and added the employer to its negative file.
A great save for our Point Predictive client and a great result for our fraud team!
Recommended by LinkedIn
'To the Point' - BONUS Episode Release
In this bonus episode recorded at the Point Predictive 2023 Auto Lending Fraud Roundtable, Sgt. Darren Schlosser of the Houston Police Department Auto Theft Division and Sgt. Dave Navarro of the Orange County Auto Theft Task Force present their findings from the front lines of fraud.
This was one of the most highly anticipated sessions of the conference, and is filled with insights into some of the most pressing challenges facing fraud detection today. Click below to listen on Spotify!
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.
Point Predictive Partner Spotlight
Our partner GDS Link is holding a webinar next week on September 28th to explore their exciting new marketing solution, ePrescreen365! Sign up to learn about how ePrescreen365 can provide your members with competitive offers and boost conversion rates. Click below to register ⬇️
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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