Auto loan fraud surged more than 16 percent to $9.2 billion last year, driven by “an array of misrepresentations,” a new report finds.
Point Predictive, an artificial intelligence solutions provider for consumer lending, assessed a treasure trove of data for lenders and dealers. This included 256 million historical applications, 300 million reported incomes in submitted applications, and billions in reported fraud and default.
Researchers determined that misrepresentations were a substantial source of fraud.
“While dramatic cases of organized crime ring stealing identities make headlines, our data reveals that the true story behind most auto lending fraud is an array of misrepresentations,” said Frank McKenna, chief innovation officer of Point Predictive, in a March 25 statement….