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Complete Story
05/13/2024
Synthetic ID Fraud Rises 98% in Auto Lending Industry
Bank Info Security
Synthetic identity fraudsters target the auto lending industry the most, leading to a 98% increase in attempts and a staggering $7.9 billion in losses for the industry in 2023. Point Predictive's study of 180 million loan applications found that income and employment misrepresentation, synthetic identities, and credit washing account for nearly 75% of the risks faced by auto lenders.
Typically associated with first-party fraud, these misrepresentations involve borrowers committing fraud rather than third-party scammers. While identity theft accounted for 14% of all risk in 2023, it represented only a fraction of the overall challenges hitting auto industry lenders, according to the report.
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