PointPredictive, the leading provider of machine learning and fraud
solutions announced record attendance at its fourth Auto Lending Fraud
Roundtable held last week in Plano, TX.
More than 50 attendees from 21 lending organizations, including 5 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.
During the roundtable sessions, lenders identified their three biggest
fraud concerns for 2019. Their first concern is the dramatic increase in
deceptive credit washing where individuals overwhelm creditors with
false claims of identity theft to remove legitimate trade lines from
their credit. Their second biggest concern is the dramatic rise in
synthetic identity which is largely driven by individuals using Credit
Protection Numbers (CPNs) to create new credit files under false
pretenses. Their third biggest concern is the ongoing and systematic
fraud by dealers that results in higher levels of first and early
payment default.
The event also included guest speakers Sergeant Darren Schlosser, from
the Houston Vehicle Fraud Task Force, and Matt Pannell, former Special
Agent with the Social Security Administration, who shared insights into
the growth of synthetic identity fraud and credit repair fraud that are
sweeping the nation.
“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. “Using so-called CPNs
to apply for credit under false pretenses is a crime and I’m seeing an
alarming increase in the number of vehicle financing fraud cases where
this is occurring. I believe collaboration between lenders, law
enforcement, car dealerships and others is important in preventing this
type of fraud from growing.”
During the event, PointPredictive showcased its groundbreaking solutions
including Synthetic ID Alert™, which alerts lenders to potential
synthetic identity issues; Auto Fraud Alert™, which provides 100 alerts
and red flag indicators to lenders based on comparing and validating
information a lender receives on an application against data assets
managed by PointPredictive; and Income Validation Alert™, which enables
lenders to streamline their income assessment of borrowers.
Glenn Munro, Executive Vice President of defi SOLUTIONS, a
PointPredictive partner that provides turnkey access to those
PointPredictive solutions through the defi SOLUTIONS Loan Origination
System, addressed the attendees, “We partner with PointPredictive
because we have a common belief that shared fraud intelligence and
scoring in real-time is the best way to combat the problem.
PointPredictive is doing this the right way.”
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 analysis shows that auto lending fraud risk has
risen by at least 38% in the last seven years and that fraud origination
risk is expected to reach $7 billion in 2019. His analysis further
showed a dramatic 140% increase in synthetic identity risk patterns in
auto applications since 2016. His research demonstrated that the drivers
behind the rising levels of fraud risk were the growth in sharing of
fraud methods on social media, the increase in lending to borrowers with
lower credit ratings, and the billions invested in fraud controls by
other industries which have had the effect of pushing fraudsters toward
auto lenders and dealers.
“We appreciate the collaboration that PointPredictive enables through
their consortium in addressing our key fraud pain points at these
roundtables,” said Jorge Arenado, AVP of Originations at Westlake
Financial. “Their 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. The chance to discuss all of
these issues with our peers is a big benefit in helping us shape our
future fraud strategies.”
“We learn quite a bit from the PointPredictive roundtable each year,”
said Mickey Watts, SVP at Anderson Brothers Bank. “As fraud
continues to morph and change, we are able to meet and discuss the
changing fraud patterns with other lenders and discuss best practices
and how to use the PointPredictive products to our best advantage.”
“Our use of PointPredictive solutions has changed our company’s
awareness around stopping fraud and misrepresentation within our
portfolio,” explained Eric Lin, General Manager of Universal Finance
Company. “The consortium roundtable event is a unique advantage to us
and the industry in the fight to protect against financial losses of
this kind.”
The roundtable, the fourth of its kind held by PointPredictive,
continues to grow as more lenders collaborate to address fraud.
“The growth of our consortium and record attendance this year indicates
that we’re on the right track in our approach to help solve auto lending
fraud,” said Tim Grace, CEO of PointPredictive. “When we launched the
auto fraud consortium two years ago, our mission was to bring the
industry together in the same way we did in the past at other companies
to address fraud in mortgage and credit card. Since fraudsters and
unscrupulous dealers attack lenders serially, it is only through
collaboration that the industry can address the issue. Our solutions are
now scoring over 1.5 million new auto applications every month using
shared machine learning models. We’re very proud of our growth and the
positive effect we are having in the industry.”
For further information on PointPredictive solutions or to join future
Auto Lending Fraud Roundtables, contact PointPredictive at info@pointpredictive.com.
About PointPredictive, Inc.
PointPredictive, Inc. is a leading provider of fraud solutions to banks,
lenders and finance companies. It solves the billion-dollar fraud
problems of auto lending, mortgage lending and on-line retail fraud with
the latest technology platforms, smarter science and business experience
by leveraging big data with analytic models. Located in San Diego,
Calif., more information about PointPredictive can be found at www.pointpredictive.com.
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