PointPredictive, a developer of anti-fraud software, has launched Auto Fraud Alert, a program that warns powersports and auto lenders about the red flags of an application before funding the loan, the company has announced.
Auto Fraud Alert has more than 100 new alerts and red flag indicators that are pulled from PointPredictive’s Auto Lending Fraud Consortium, a database of fraudulent loans that the company has collected over the years. Though the bulk of PointPredictive’s clients are in the auto industry, “some” lenders provide both powersports applications and auto applications, Chief Strategist Frank McKenna told Powersports Finance without being more specific.
The data from the consortium is applicable to powersports because the fraud trends in powersports and auto “are the same,” McKenna added.
Forty of the new program’s alerts are based on synthetic identity and income fraud, two of the top forms of fraud in powersports, McKenna said. Specifically, the alerts search for patterns related to Social Security Number, borrowing history, and income.
For example, the alert would identify differences between applications for a single borrower sent to multiple lenders, McKenna said. “Is the income changing, is the employment of the borrower changing, has there been a history of fraud at a certain address, has there been a history of lots of fraud at a certain dealer?” he said.
The product is integrated with lender origination systems, so when lenders submit requests to have applications scored on fraud risk, they receive alerts “within seconds,” McKenna said. The information populates a screen on the origination system, and the lender gets a PDF of information.