SAN DIEGO, January 13, 2022 /PRNewswire/ — Point Predictive Inc., the San Diego, a London-based company that provides machine learning solutions to the lending industry, today announced that its industry-leading fraud team has reached the milestone of identifying $1 billion in fraudulent loan value linked to over 5,000 fake employers on auto loan applications. Findings were made from February 2019 through December 2021. Point Predictive is the first company to proactively investigate the problem of fake employers in the lending industry and identify the scale and scope of the problem.
Point Predictive has found that in fake employer fraud cases, a borrower creates a fake employer to generate fake pay stubs, falsified earnings, and synthetic identities for car dealerships and car lenders when financing. The bogus employers were identified by Point Predictive fraud analysts while investigating loan applications flagged by Auto Fraud Manager – the consortium’s risk-scoring solution used by auto lenders globally. national.
During investigations, identified bogus employers were associated with fake websites, falsified earnings, high rates of synthetic confirmed identity, and high rates of delinquent loans.
“The increase in the use of fake employers on credit applications is staggering, and the $1 billion threshold only proves the growing threat of this problem,” said Justin Hochmuth, Senior Fraud Analyst at Point Predictive, “We uncover around 100 new fake employers that are created every week. our partners as we work to dramatically reduce fraud across many industries, from car loans to mortgages and even personal loans and apartment rentals.”
Point Predictive’s unique vantage point with the Lending Consortium enables the identification of these types of hidden fraud patterns that a lender or car dealership may not identify on their own. The Point Predictive Consortium contains over 110 million historical applications and over 10 billion unique risk attributes that can reveal patterns, a scale that far exceeds any competitor. In these cases of fraud, a lender or dealer may only see one application associated with an obscure employer and will not have an understanding of the broader workplace fraud scheme. However, the consortium can identify how a single bogus employer could be associated with hundreds of suspicious applications from many different lenders, information that can save lenders and dealers up to $21,000 in losses per event.
“When we formed the Auto Lending Consortium in 2017, these are exactly the kinds of models we focused on discovering,” says Point Predictive CEO Tim Grace. “When one of these fake employers is used on an application, the loan is much more likely to fail. We see some of these fake employers associated with default rates between 40% and 100%. We identify these schemes proactively early on for our lenders, helping them avoid hundreds of millions of losses every year.”
For lenders or other organizations wanting to determine if an employer is considered a fake, log on to Point Predictive’s “Employer Check” page for guidance. Click on here for the link. And for more information about Point Predictive, please contact [email protected]
About Predictive Point Inc.
Point Predictive delivers a new level of confidence and speed through the unique combination of artificial and natural intelligence using decades of risk management expertise. The company’s technology solutions quickly and accurately identify who is reporting their loan applications faithfully and who is not. As a result, lenders are now able to easily fund loans without asking the vast majority of applicants for onerous documents such as pay stubs, utility bills or bank statements. This improves funding rates by 40-50% while reducing overall prepayment default losses by more than 30%. Borrowers get loans faster and we dramatically increase a lender’s bottom line profits. Situated in San Diego, California, you can find more information about Point Predictive at www.pointpredictive.com.
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