As auto lenders look to technology to scale and build up their businesses, susceptibility to fraud grows.
“Technology has enabled us to run bigger organizations, more powerful lending organizations but really, technology is just a risk management trade-off,” said Josh Wortman, chief executive data scientist of General Forensics, a data and analytics company that specializes in fraud trends in auto retail and finance.
With greater resources and scale, lenders typically expect to grow their businesses by expanding products, channels and portfolios, but it’s a double-edged sword. “With technology and bigger organizations, of course, more fraud is getting through,” Wortman said.
But there’s a silver lining here: Technology also helps lenders detect fraud, and that detection can be achieved at a greater scale with the help of digital tools.
In this episode of “The Roadmap,” sponsored by Blend, Auto Finance News chats with Wortman about fraud trends he’s seeing in auto finance and best practices to mitigate criminal exposure, while delving into the intersection between technology and fraud.