The Impact of Inflation on Auto Lending

25% Surge in Fraud Scores
Average fraud scores in auto lending jumped from 408 to 511 in 2021—a 25% increase—highly correlated (0.90) with US inflation rates

29% Rise in Early Payment Defaults
Early payment default (EPD) rates climbed from 7% to 9% between January and September 2021—mirroring a 0.76 correlation with inflation and signaling elevated fraud risk

Income Misrepresentation Trends
Borrowers overstated income by up to 15% more frequently as inflation rose, with IncomePass™ flags doubling from 8% to 23% of EPD events since March 2021

Rise in Synthetic & Identity Fraud
Synthetic identities, fake employers, and credit-washing flags are all on the upswing—requiring advanced auto loan fraud detection tools to stay ahead

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