Point Predictive’s Fraud Analysts Identifying $2 Million In Fraud Weekly

SAN DIEGO, Calif June 2, 2020 – Point Predictive Inc., the San Diego-based company that provides machine learning solutions to lenders, announced today that its Outsourced Fraud Management (OFM) service, driven by PointPredictive’s highly trained forensic fraud analyst team, has identified five new fraud patterns happening across the industry as well as reaching a new milestone –  identifying more than $2 million per week in fraud risk for clients.

“While the state-wide lockdowns have negatively impacted loan origination volumes industry-wide, we are not seeing a corresponding drop in fraudulent loan applications. In fact, those have been increasing since late March,” indicated Tim Grace, CEO of PointPredictive. “Our fraud analysts are identifying more income misrepresentation, more employer fabrication, and even more borrowers with characteristics of credit washing.  This is the type of risky fraud behavior that we typically see in recessions – we see both borrowers and dealers getting more ‘creative’ to close deals. Our centralized fraud analyst team and unique view into fraud at a consortium level are giving us a powerful edge in fighting fraud for auto lenders.”

In addition to identifying fraud risk at the loan level, the OFM team is using PointPredictive Ai scores and fraud alerts to identify macro patterns of fraud ring activity across multiple lenders in its nationwide fraud consortium.  In the last month, the team identified 5 separate fraud patterns affecting nearly 320 loan applications totaling more than $4.8 million in attempted fraud.     The analysts are able to identify cross-loan fraud patterns by analyzing the flow of applications from more than 70,000 dealerships.  As an example, they might look for unusual clusters of reported employment information, sudden increases in activity at an address or apartment complex, or even an unusual increase in average fraud scores originating from a certain ZIP code.

“The patterns of fraud are easy to identify when you have the vantage point of our data consortium powered by our patented Ai,” indicates Frank McKenna, Chief Fraud Strategist at PointPredictive.  “Fraudsters are creative, but they also tend to use the same information or techniques over and over again until they no longer work.  Our analysts are able to spot those clusters because our combination of data and technology is unique – that is why lenders rely on us.  We’re able to look at the bigger picture across the industry, rather than just a lender’s individual experience.”

The OFM Team, which was launched late last year, accesses a variety of third-party and public records data sources as well as PointPredictive’s proprietary consortium data in order to assess the likelihood of fraud on each loan application.   When that is discovered and validated, the lender is notified with a comprehensive narrative and alert report directly from the fraud analyst outlining their findings. Armed with that additional information, lenders can then intervene in the funding process to request additional information from consumers or dealers related to the risk areas identified for that loan.

For auto lenders that are interested in more information or would like to use Outsourced Fraud Management or Auto Fraud Manager, please contact info@pointpredictive.com.