3 Most Common Types of Fraud and Ways to Prevent It

As consumer fraud continues to rise year over year, lenders are seeking ways to detect and prevent fraudsters before the situation escalates, Frank McKenna, chief fraud strategist for PointPredictive, told Powersports Finance.

Historically high lending volumes are fueling an estimated $6 billion in annual fraud losses to lenders, due to fraudsters having access to more information and technology for data breaches, McKenna said.

“Auto and powersports lending is one of the main targets for fraudsters because obviously the value of lender financing is so high,” he said. “If you compare to when a fraudster steals a credit card, they are lucky if they get $700 to $800 off that card before it is shut down. But for auto and powersports dealers it can be several thousand dollars, so the payback is higher.”

McKenna shared three of the most common types of fraud gaining popularity in the space. To read the full article, click here.

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