SAN DIEGO, May 02, 2017 (GLOBE NEWSWIRE) — PointPredictive, a leading provider of machine learning and fraud solutions, announced the strengthening of the Automotive Lending Fraud Consortium — an industry collective aimed at tackling the problem of auto fraud through collaboration. The consortium was launched in response to historically high lending volumes that are fueling an estimated $6 billion in annual fraud losses to lenders. Lenders that join the consortium agree to share the patterns of fraud in their data and meet on a quarterly basis to share fraud experiences. Six of the nation’s top 10, and nine of the nation’s top 20, lenders attended an Automotive Fraud Roundtable during April in Dallas, Texas (hosted by Santander Consumer USA Inc.). A total of 13 lenders, representing more than a third of U.S. auto-lending originations, participated in the discussions to expand consortium participation.
“All the lenders in attendance reported that auto lending fraud is a growing concern in their organizations and that they are bolstering their defenses in response,” said Tim Grace, CEO of PointPredictive. “We are providing a critical missing piece to those lenders’ fraud defenses. With the consortium, we’re enabling lenders to share their patterns of auto lending fraud through predictive application risk scores and dealer risk scores — just like other industries have been doing for years. It’s almost impossible for a lender to make a big dent in their fraud losses working in isolation.”
To kick off this next phase of consortium growth, the auto lenders in attendance set in motion a plan for enhanced industry collaboration. They established guidelines and a working plan to move forward aggressively to respond to fraud.
“The best way to stop fraud is together as an industry,” commented Rich Morrin, Chief Operating Officer for Santander Consumer USA. “We know that individuals and criminal rings work to defraud banks and financial institutions; it’s time we work together to stop them.”
To support the fraud consortium, PointPredictive will play a critical and active role:
“Ten years ago, members of the team at PointPredictive established the Mortgage Fraud Consortium,” says Frank McKenna, Chief Fraud Strategist of PointPredictive. “That helped cut fraud in half in that industry within twenty-four months of adoption. It’s an enormously powerful technique because it not only reduces fraud and early payment default losses, where fraud is often mistakenly classified, but it can detect more fraud while reducing false positives – compared to currently-used tools like Bureau Alerts.”
The Automotive Lending Fraud Consortium is open to all U.S. auto lenders.
“We are hopeful that many other lenders will reach out and join the consortium, and that attendance at the next meeting doubles or triples,” added Grace.
For more information about the Automotive Lending Fraud Consortium, contact Kathleen Waid at firstname.lastname@example.org.
About PointPredictive, Inc.
PointPredictive, Inc. is a leading provider of fraud solutions to banks, lenders and finance companies. It solves the billion-dollar fraud problems of auto lending, mortgage lending and retail fraud with the latest technology platforms, smarter science and business experience by leveraging big data with analytic models. Located in San Diego, Calif., more information about PointPredictive can be found at www.pointpredictive.com.
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Source: Nasdaq Automotive News