Auto finance fraud often happens during the origination process, so PointPredictive and defi SOLUTIONS are joining forces in an effort to curtail the growing trend that TransUnion recently reported as having surpassed $500 million last year alone.
On Thursday, PointPredictative announced a new partnership with defi SOLUTIONS. PointPredictive insisted that it brings a suite of artificial intelligence (AI) predictive scoring that can identify the presence of material misrepresentation and fraud within automotive loan applications and automotive dealers. This predictive technology has been shown to streamline auto financing decisions in real-time while protecting and reducing auto lender losses by 50 percent or more in fraud and first and early payment defaults due to material misrepresentation.
These types of losses are forecasted to represent a nearly $6 billion problem industry wide, according to PointPredictive.
The defi SOLUTIONS platform of services can offer finance companies the flexibility and freedom to leverage leading-edge technologies like PointPredictive’s to optimize decisioning efforts. Officials highlighted defi SOLUTIONS’ auto finance customers will be invited to participate in a limited-time, no-risk, pilot of PointPredictive’s solutions. They will also receive no-fee membership in the PointPredictive Auto Fraud Consortium.
“This addition to our partner roster helps ensure our clients have quick access to the information they need to run their businesses,” said Stephanie Alsbrooks, chief executive officer at defi SOLUTIONS.
PointPredictive chief executive officer Tim Grace added, “We are very excited about our new partnership with the fastest growing auto origination platform in the U.S. — defi SOLUTIONS.
“Our vision is to provide a real-time, actionable fraud score for every auto loan application in the industry,” Grace continued. “Credit scores and identity fraud alerts are not sufficient to allow lenders to determine when someone has made a material misrepresentation of information on an application. These material misrepresentations are some of the leading reasons why default and loss rates are increasing today.”
PointPredictive users have real-time access to Auto Fraud Manager 2.0 and DealerTrace 2.0, which can increase fraud detection by leveraging enhanced predictive algorithms that evaluate the entire financing application, as well as recent activity from dealers. This tool can enable finance companies to screen for, and detect, all types of fraud including identity, employment, income, collateral and dealer risk.
In recently completed evaluations, the company said Auto Fraud Manager identified more than 50 percent of fraud, first payment defaults and misrepresentation-related early payment defaults within the riskiest 7 to 10 percent of all applications, when rank-ordered by the Auto Fraud Manager score.
Editor’s note: Eric Werab, vice president of fraud and product strategy at PointPredictive, is slated to be a special guest during an upcoming episode of the AuSM Podcast. .