Point Predictive Releases 2025 Auto Lending Fraud Trends Report Revealing $9.2 Billion Industry Risk
Mar 25, 2025 - financialpost.com
Point Predictive has released its 2025 Auto Lending Fraud Trends Report, highlighting a significant $9.2 billion fraud risk exposure for the auto lending industry, the highest ever recorded. The report, based on an extensive dataset of over 250 million historical applications, reveals that first-party fraud, where borrowers or dealerships misrepresent information, accounts for 69% of this risk. Income and employment misrepresentation alone contribute to 43% of the total fraud risk. The report also notes a 25% increase in early payment default risk and a 26% rise in bust-out fraud over the past 24 months. Emerging threats include the use of AI-powered fraud tools, with a 644% increase in discussions about AI and deepfakes for fraud between 2023 and 2024.
Point Predictive offers solutions like AutoPass™, BorrowerCheck™, and IEValidate™ to help lenders and dealers combat these fraud threats. These tools aim to automate lending decisions, prevent early payment defaults, and validate income and employment, thereby reducing fraud and improving profitability for lenders. The report underscores the importance of advanced data and technology solutions in identifying fraudulent activities and enhancing lending confidence.
Key takeaways:
Auto lenders face an estimated $9.2 billion in fraud loss exposure for 2025, with first-party fraud accounting for 69% of this risk.
Income and employment misrepresentation account for 43% of total fraud risk, equating to $3.9 billion.
Emerging threats include a 644% increase in AI-powered fraud tools, such as synthetic identity generators and deepfake videos.
Point Predictive's solutions, like AutoPass™ and IEValidate™, help lenders and dealers combat fraud and validate income and employment.
