Byrider partners with fraud consortium

© Can Stock Photo / alexandersikov

Buy-here, pay-here loan provider Byrider is the latest auto lender to partner with PointPredictive, an artificial intelligence fraud prevention platform, the companies announced today. The partnership comes on the heels of six months of testing and puts the total number of lenders in the anti-fraud consortium at “about 30,” said PointPredictive’s Chief Fraud Stategist Frank McKenna.

Buy-here, pay-here loan providers are at a higher risk of fraud compared with other lenders, McKenna said, but they typically take extra steps in the underwriting process to mitigate that risk. “Buy-here, pay-here lenders work very hard to prevent fraud during the underwriting and funding process,” he said. “Whether it is requiring higher down payments, scrutinizing borrower income documentation, or double- and triple-checking identities, they comb through every loan file and in the process reduce a lot of their risk right upfront. This adds a lot of cost to the process and lenders can lose good deals. What we are finding with buy-here, pay-here lenders is they are looking to use AI to help streamline that whole process of onerous checking.”

Read more: The wolf among us: Fraud in auto finance

PointPredictive’s scoring solution — Auto Fraud Manager with Auto Fraud Alert Reporting — aids auto lenders’ ability to prevent default on high-risk applications” due to fraud, according to the statement.  Fraud origination risk is expected to hit $7 billion this year, according to data provided by PointPredictive.

Byrider has more than 150 dealerships in its BHPH network.

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