New Solution Complements Lenders’ Internal Scorecards and Market-leading Auto Fraud Manager to Stop Losses Caused by Synthetic ID Fraud
SAN DIEGO, Calif., March 6, 2018 – PointPredictive announced today the launch of a new patent pending solution called Synthetic ID AlertTM. The solution is a complement to the company’s comprehensive application fraud scoring solution Auto Fraud Manager. Synthetic ID Alert will help auto lenders stop synthetic identity fraud by producing alerts on applications that exhibit patterns consistent with synthetic ID fraud. This sophisticated machine learning AI is quickly and easily installed within a lender’s technology system to be used in real-time application review.
“Auto lenders participating in our consortium meetings have identified that one of their top three issues this year is solving synthetic identity fraud. Our analysis shows that synthetic identity fraud accounts for 15-20% of fraud and misrepresentation losses across the industry. This equates to more than $1 billion in synthetic identity originations this year,” says Eric Werab, Vice President of Fraud and Product Strategy, at PointPredictive. “Synthetic identity thieves have figured out that credit scores and reports can be manipulated through schemes such as trade line piggybacking which can artificially inflate their credit scores.”
Synthetic ID Alert scores applications based on patterns of fraud that fraud data scientists have identified in millions of historical automotive applications. This solution understands the logistics of social security number issuance, the interconnections between each of the pieces of information supplied on the application by the dealers and borrowers, and how all of these compare to proprietary and statistical norms accumulated from historical applications, dealer performance, and fraud ring patterns. If the solution determines that an application has a high likelihood of synthetic identity, a score and actionable reason codes are provided to the lender so they can take immediate steps to prevent funding the fraudulent loan. With this solution, lenders will need to act on less than 0.5% of their total application population to stop a significant portion of their synthetic ID fraud.
“Our proprietary machine learning algorithms are built on over 40 million historic applications and are capable of instantly identifying a pattern of synthetic identity. We wanted to create a simple, easy to install and use solution for lenders to solve a specific need,” explains Tim Grace, CEO at PointPredictive. “With Synthetic ID Alert, we think we can help lenders identify a significant portion of their synthetic identity fraud applications before they approve the loans that will lead to losses.”
The solution is available immediately to lenders as an application that can be installed in less than a day on existing technology systems. We also plan to offer this installation to our partner loan origination and solution providers. To receive more information about Synthetic ID Alert, or to request our latest white paper entitled, “How Hidden Fraud & Misrepresentation are Contributing to the Rise in Default
Rates,” send a request through www.pointpredictive.com or directly to [email protected].
PointPredictive Inc. is a leading provider of fraud solutions to banks, lenders and finance companies. It solves the billion-dollar fraud problems of auto lending, mortgage lending and on-line retail fraud with the latest predictive scoring techniques, smarter science and business experience by leveraging big data with analytic models. Located in San Diego, Calif., more information about PointPredictive can be found at www.pointpredictive.com.