Auto Lenders are Increasingly Impacted by Fraud

Auto Lenders are at risk for $8.1 billion in fraud annually because loans are financed based on applications containing misrepresentations. Identity theft is cited as the cause of 20% of fraud. Auto dealers are on the frontline of this problem and can pay the price. When auto lenders determine that the dealer could have prevented the fraud, 59% of lenders require that the dealers “buyback” the loan. 

Sources: “Auto Lending Fraud Trends Report”, Point Predictive, 2023

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