“Le roi est mort, vive le roi!” The peers of medieval France recited this proclamation to simultaneously acknowledge the death of a king and the continuation of the monarchy. This seemingly contradictory quotation aptly describes my feeling as a fintech compliance practitioner for the current state of fair lending. Ostensibly, recent Federal actions suggest dramatic changes
Welcome to Informed’s Fraud Watch: Informed’s blog on the latest fraud trends. As lenders contend with evolving risks in income document fraud, one emerging fraudster technique deserves more attention–“transaction recycling.” “Transaction recycling” describes fraudster re-use of the real-world identifiers associated with ACH, check, debit, and vendor transactions in bank statements or other income documents. A
Transaction Recycling is Becoming a Massive Document Fraud Problem Read More »
Artificial intelligence (AI) is rapidly transforming industries across the world, including auto finance. Traditionally, lenders have faced challenges with detecting fraud, validating income, and maintaining strong customer engagement. However, recent advancements in AI technology are revolutionizing these processes with remarkable efficiency. According to Precedence Research, the generative AI market is expected to expand by 27%
AI in Auto Finance: Advancing Risk Management, Fraud Prevention, and Customer Engagement Read More »
Fraud in auto lending is constantly evolving — and circular bank statement fraud is the latest tactic lenders must watch for. For years, lenders have battled synthetic identities, falsified paystubs, and fake employers. Now, a more sophisticated tactic is taking hold: circular income transactions hidden within digital bank statements. This isn’t just fraud repackaged —
Circular Bank Statement Fraud: The New Synthetic Income Scam Read More »
