Used-car dealers scam insurers in California

Auto insurance fraud is the latest scheme to hit the West Coast as a ring of used-car dealers allegedly ripped off auto insurers for $22,000 by filing fraudulent insurance claims, according to the California Department of Insurance.  The organized fraud involved owners and associates of Sacramento, Calif.-based Habib Auto Sales, Ocean Auto Sales, and Rusul […]

• Nicole Casperson
• June 26, 2019
• Risk

Fraud Origination Risk to Hit $7B by Year-end

The risk of fraud for auto lenders has increased 5% year over year, according to new data shared with Auto Finance News by PointPredictive’s chief fraud strategist Frank McKenna. By year-end 2019, fraud origination risk is expected to reach $7 billion. Fraud in the auto lending industry is evident. In fact, discussions between lenders at […]

• Nicole Casperson
• June 13, 2019
• Risk

PointPredictive Designs Fraud Tool to Expose Application Risk

PointPredictive, a developer of anti-fraud software, has launched a program that tells lenders not only which loan applications are risky, but why they're risky. Auto Fraud Alert, which launched Tuesday, exposes potential fraud attributes directly to the lender, Chief Strategist Frank McKenna said. “A lot of times lenders were in the dark about what kind of […]

• Bianca Chan
• April 5, 2019
• Operations, Risk, Strategy

Veros Credit Turns to Machine-Learning Fraud Solution

In an effort to combat fraud, Veros Credit has adopted PointPredictive’s machine-learning fraud scoring solution, Auto Fraud Manager. The onboarding process — which typically lasts anywhere from three to six months, depending on the lender — was completed earlier last week. “We do a lot of work to educate lenders on the problem of misrepresentation […]

• Joey Pizzolato
• March 19, 2019
• Operations, Risk, Strategy, Technology, Update

Ford Motor Credit Demands $112M From Dealership Chain for Fraud Scheme

Ford Motor Credit Co. claims it is owed $112 million from Reagor Dykes Auto Group and owners Bart Reagor and Rick Dykes, for “hiding what may be one of the largest floorplan financing frauds in the history of the U.S. from Ford Credit,” the captive said in a motion filed Jan. 7. Ford Credit claimed […]

• Nicole Casperson
• January 14, 2019
• Compliance, Operations, Risk, Update

Anderson Brothers Bank Looks to Expand Business, Shrink Fraud in 2019

Anderson Brothers Bank’s priorities for 2019 are expansion and fraud prevention. The bank, which operates 23 branches in South Carolina and is permitted to offer auto loans in North Carolina, has filed for a license to provide auto financing in Georgia in the first quarter of this year. The bank will initially serve dealerships in […]

• Monica Melton
• January 3, 2019
• Innovation & Mobility, Operations, Strategy, Technology

Westlake Financial Integrates AI Anti-Fraud Solution

Westlake Financial has enlisted the services of PointPredictive, an artificial intelligence-enabled risk management and anti-fraud solution. Westlake will use the scoring solution – called Auto Fraud Manager – to identify misrepresentation and prevent delinquency on high-risk applications. The risk engine is based on an algorithm that is trained with each new lender’s data set. More […]

• Monica Melton
• October 31, 2018
• Innovation & Mobility, Operations, Risk, Technology

14% of Subprime Loans at Franchise Dealers Have Price Inflation

An estimated 5% of franchise dealerships up-charge vehicles sold to subprime consumers more than $1,000 on average above the online advertised price, making it more likely that borrowers will default on their loans, Josh Wortman, an analyst with General Forensics, told AFN. Since 2017, Wortman’s data also shows that 26% of independent dealerships inflate prices […]

• Nicole Casperson
• September 20, 2018
• Risk