Point Predictive’s 2023 Auto Lending Fraud Survey showed a record number of finance companies are concerned about increases in fraudulent activity.

What concerns survey participants most is income misrepresentation since many believe economic conditions will worsen and continue to drive fraud increases throughout 2023.

Point Predictive co-founder and chief strategist Frank McKenna orchestrated the survey to capture the concerns, economic projections and sentiments of automotive finance companies across North America.

“Although we are more than a year removed from the global pandemic, the automotive lending market continues to witness its impact on fraud,” McKenna said in a news release. “The pandemic created a unique opportunity for fraudsters to capitalize on leveraging falsified information for significant financial gain. This trend continues to grow, putting auto lenders and dealers on the defensive.”

The 2023 Auto Lending Fraud Survey Report contains data from 35 top-level executives and leaders in auto finance and banking industries on the greatest challenges in the marketplace today.

Point Predictive said these industry leaders share candid thoughts on the most pressing fraud concerns of 2023, discuss how finance companies are preparing to combat fraud, and reveal how fraud is impacting relationships with dealers.

Four key highlights include:

—Finance companies are more concerned with fraud risk this year than last year

—Finance companies are most concerned with income misrepresentation and fake identities

—Most finance companies believe the economy will worsen in 2023

—Finance companies are focused on acquiring technologies and data to fight fraud

“Automotive lenders realize the true value of technology and digital automation,” Point Predictive co-founder and chief executive officer Tim Grace said in the news release. “We had a record number of lenders communicate their intentions to enhance their decision automation capabilities this year while maintaining best-in-class risk mitigation.

“We look forward to establishing new partnerships with lenders who are looking to upgrade their decision automation technologies, reduce their losses from early payment defaults and fraud, and enhance their customer and third-party experiences,” Grace went on to say.

All of the survey findings can be found via this website.