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

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

Chevrolet Dealership Slapped With $2M Fine for Loan Fraud

An Erie, Pa.-based dealership agreed to pay a penalty after getting caught in a fraud scheme in which the dealership sold vehicles at falsely inflated prices to subprime consumers who could not afford them, the U.S Attorney’s Office said Friday. Specifically, Hallman Chevrolet and the Hallman Auto Group falsified subprime loan documents and inflated prices […]

• Nicole Casperson
• September 4, 2018
• Compliance, Strategy

Powersports Lenders Turn to Machine Learning to Combat Fraud

Powersports lenders are interested in sniffing out fraud earlier and are considering options in the form of machine learning such that the software can adapt to fraudulent behaviors, Powersports Finance has learned. “There’s quite a bit of identity, synthetic identity, and income fraud in powersports,” said Frank McKenna, chief fraud strategist at PointPredictive. “But the […]

• Matthew Wood
• June 13, 2018
• Compliance, Technology

Lenders Tackling Rising Forms of Fraud in the Auto Industry

Different forms of fraud are rising in the auto industry and are presenting lenders with challenges as fraudsters continue to grow smarter, Frank McKenna, chief fraud strategist at artificial intelligence solutions provider PointPredictive, told Auto Finance News. Using machine learning, PointPredictive ran fraud models on funded originations from 2012 through 2018 and found that the underlying […]

• Matthew Wood
• June 7, 2018
• Archives, Compliance

Growth of Synthetic Identity Fraud Slows in 2017

Synthetic identity fraud grew in the fourth quarter on a year over year basis, but artificial intelligence is helping to slow the pace of growth, according to a report from TransUnion. Synthetic fraud balances rose 5.2% in the fourth quarter compared with the same period the year prior, according to the report. Such balances rose […]

• William Hoffman
• March 8, 2018
• Risk, Technology