Welcome to the latest edition of Informed’s Fraud Watch: Informed’s blog on the latest fraud trends. Generative AI is changing how lenders’ screen for fraud. Document fakes are rapidly getting so good that they will pass even the most careful visual inspection. To identify fraud, lenders now need to go beyond the four corners of a
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 »
In the last blog, we broke down types of fraud, who tends to commit them (1st party vs. 3rd party vs. 2nd party aka dealer) and why (misrepresent income, misrepresent home address or contact info, etc.). In this blog, we will explore how fraud happens. There are two primary ways information is misrepresented during the
AI-generated image from Midjourney representing an auto dealer doing manual paperwork Calculating income from bank statements and self-employed applicant’s income has traditionally been a time-consuming, manual process often leading to errors and delays in decision-making. Lenders are now adopting new technology allowing dealers to access instantaneous validation, ensuring accuracy and efficiency in their financial assessments
To err is human. “But,” it is said, “to really mess up takes a computer!” Perhaps that quip is the origin behind the suspicion that Artificial Intelligence (AI) algorithms could add to unfairness in consumer lending. Properly used, however, AI can actually reduce bias. Bias in consumer lending occurs when a lender makes a decision
Argyle’s streaming income data and Informed’s real-time verifications are expanding lenders’ coverage and optimizing the decisioning process Since Informed’s founding in 2016, we’ve helped lenders increase capture rates, lower the cost of credit, and promote financial inclusivity; especially for critical services like auto loans. Our platform uses AI and machine learning to unlock insights trapped
Argyle & Informed Join Forces to Transform Modern Lending Read More »
At the recent Bank Automation Summit, Informed’s Director of Auto Lending Strategy, Jessica Gonzalez participated in a panel discussion. Also on the panel: Kevin Faragher, Senior Director of Product and Strategy at Ally Financial Michael Reynolds, Business Technology Senior Manager for Service Digitization at KeyBank,and Whitney McDonald, Deputy Editor Of Bank Automation News (moderator) The
Part 1: Automation to Detect and Stop Fraudulent Transactions Read More »
