Point Predictive Analysts Help Lenders and Auto Dealerships Stay Ahead of Fraud

Point Predictive artificial intelligence-based technology solutions help lenders and automotive dealerships identify suspicious, high-risk loan applicants, but we don’t stop there. Since our founding, we have focused on combining the power of artificial intelligence and machine learning with in-depth analysis provided by our experienced analyst team.

Every day, our analysts are reviewing loan applications and data from the Point Predictive data consortium to identify and alert lenders and dealers to the latest trends in fraud attempts. Our analyst team collaborates with our clients to ensure the best results using our technology solutions. By staying close to the applications lenders and dealers are seeing in near real-time, as well as digging deep into the consortium data, our analyst team is able to identify new fraud trends quickly, identify individuals that are applying for loans at multiple dealerships and with multiple lenders in a short time window (we call these folks “frequent fraudsters”), uncover fake or suspicious employers and/or word phone numbers being used on a disproportionate number of applications, and much more.

For a recent example, one of our analysts found that in the last 5 weeks of 2021, sixty-seven (67) auto loan applications were submitted using twenty-nine (29) different social security numbers all with the same work phone number. Forty-four of the applications were received by one of our auto lender clients. There were three different employer names listed on these applications all with the same phone number.

Our analyst dug in and found that each of those employer names had at one point been located at the physical address listed on the application, only one of which currently was located there.

The analyst researched the ownership of the current business at that location and found the current owner as well as other businesses affiliated with that individual. The analyst also researched the company’s website and social media and determined the employer, work phone number, and related applications to be suspicious, which was communicated to our clients.

In another recent example, a single dealership received thirty-two (32) applications with the same employer and work phone number listed within a few weeks. Twelve of the applications were submitted to one of our auto lender clients. The analyst found that the work telephone number was linked to an employee at the dealership. Many of the applicants also provided inflated incomes on their applications.

Our clients rely on our analyst team to help them investigate suspected fake employers and pay stubs, social security numbers linked to prior frauds, fraud rings, and much more. Our fraud analysts have successfully identified employees at dealerships that are colluding with borrowers to submit applications with false or misrepresented data. Our analysts also review samples from our clients’ monthly performance files and help identify issues that could have been caught at the point of application. This helps our clients identify training opportunities and reduce delinquencies and losses.

Having this feedback loop between our analysts and our clients helps each group do a better job of fighting fraud and early payment default.