PointPredictive formally launched today, May 30, a fraud data exchange for auto lenders at the Auto Lending Fraud Consortium Roundtable in Fort Worth, Texas. Auto lenders will be able to use the Fraud Data Exchange as a repository for sharing data from confirmed fraudulent auto-loan applications. The service is designed to detect serial fraudsters that cause a significant portion of the $6 billion in annual misrepresentation and fraud-related losses across the U.S. auto lending industry.
“[Auto lending] is the one industry that has not adopted at a wide-scale fraud data consortium to date,” PointPredictive Chief Fraud Strategist Frank McKenna told about-fraud.com. “Many fraud perpetrators operate under a cloak of anonymity that allows them to repeat the same fraud schemes for years by moving from lender to lender and dealer to dealer. They succeed because lenders have not had a safe, secure mechanism for providing information about the schemes they detect – mail drop addresses, false businesses, fabricated application data, and known fraud rings – and then accessing that same type of information reported by other lenders.”
PointPredictive is a San Diego-based provider of fraud solutions to banks, lenders and finance companies primarily active in the auto lending and mortgage lending markets.
As part of the service, PointPredictive will organize the collection and standardization of each participating lender’s negative files and scan the repository for possible reuse of negative data as new application and transaction information is received. Participating lenders will be encouraged to report all instances of identity fraud that have been investigated and confirmed to be true name fraud. PointPredictive will also encourage lenders to report the number of confirmed instances involved with information such as addresses, phones and other key information on loan applications. Lenders will then receive alerts about any matching information detected. The lender’s fraud investigators can then identify if there is fraud present on an active loan application.
The Fraud Data Exchange will be offered to lenders as a subscription-based service, with pricing based on the number of loan originations it is used and the size of the subscribing lender. PointPredictive will offer the data exchange as part of its core Auto Fraud Manager product and, alternatively, as a stand-alone service. Lenders will be able to choose which solution best fits their needs.
While it may take a while for the Fraud Data Exchange to bring a majority of U.S. auto lenders onboard, PointPredictive believes that the demand for such a solution exists in the auto market.
“Lenders have been looking for a way to collaborate with each other on known and confirmed fraud trends for many years so this is something the market has been asking for a while,” McKenna told about-fraud.com.