Point Predictive, the San Diego-based company that provides machine learning solutions, released its 2023 Auto Lending Fraud Survey, which captures the concerns, economic projections, and sentiments of automotive lenders across North America. Results indicate a record number of lenders are concerned about increases in fraudulent activity – more specifically, income misrepresentation – and believe our economic conditions will worsen and continue to drive this increase throughout 2023.
“Although we are more than a year removed from the global pandemic, the automotive lending market continues to witness its impact on fraud,” said Frank McKenna, Co-founder and Chief Strategist at Point Predictive. “The pandemic created a unique opportunity for fraudsters to capitalize on leveraging falsified information for significant financial gain. This trend continues to grow, putting auto lenders and dealers on the defensive.”
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The 2023 Auto Lending Fraud Survey Report contains data from 35 top-level executives and leaders in auto lending and banking industries on the greatest challenges in the marketplace today. In the report, these industry leaders share candid thoughts on the most pressing fraud concerns of 2023, discuss how lenders are preparing to combat fraud, and reveal how fraud is impacting lender-dealer relationships.
Key highlights include:
- Lenders are more concerned with fraud risk this year than last year
- Lenders are most concerned with income misrepresentation and fake identities
- Most lenders believe the economy will worsen in 2023
- Lenders are focused on acquiring technologies and data to fight fraud
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“Automotive lenders realize the true value of technology and digital automation,” said Tim Grace, Co-founder and Chief Executive Officer at Point Predictive. “We had a record number of lenders communicate their intentions to enhance their decision automation capabilities this year while maintaining best-in-class risk mitigation. We look forward to establishing new partnerships with lenders who are looking to upgrade their decision automation technologies, reduce their losses from early payment defaults and fraud, and enhance their customer and third-party experiences.”
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