What Capital One’s data breach means for auto finance

In the wake of Capital One Financial’s data breach, auto lenders should evaluate ways to tighten up cybersecurity and identify points of vulnerability. The breach compromised 140,000 Social Security Numbers, and 80,000 bank account numbers were made available, according to the bank’s response to the breach. However, the impact might be “somewhat contained,” said Brian Landau, senior vice president […]
  • Nicole Casperson
  • July 30, 2019
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House Financial Services Committee urges oversight of alt-data

The use of alternative data by lenders could expand access to credit to more than 40 million consumers. Likewise, banks and credit unions are using alternative data to fight fraud and provide faster access to funds. However, regulatory uncertainty surrounds the use of alternative data in making lending decisions, according to the U.S. House Committee on Financial Services’ Task Force on Financial Technology. […]
  • Nicole Casperson
  • July 25, 2019
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Fraud analytics, alt-data reduce risk for nonprime lenders

The ability to identify risk as early as possible in the loan origination process can improve portfolio performance, and lenders focused on nonprime segments have better resources than ever before to reduce loan risk. Early identification of high-risk borrowers can reduce or potentially eliminate defaults. Fraud analytics and alternative credit data — which provides a […]
  • Lana Johnson
  • July 11, 2019
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Fighting fraud with fintech

To counter the continued rise in fraud, auto lenders of all sizes are counting heavily on risk management and loss mitigation. For small lenders, risk management may be the part-time responsibility of one employee. Banks, captives, and credit unions may devote an entire team to the endeavor. However, the degree of diligence devoted to risk […]
  • Lana Johnson
  • June 24, 2019
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Westlake Exec Outlines Auto Finance Strategy for the Current Economic Cycle [VIDEO]

Technology tools will help lenders navigate and excel in the current financial cycle, said Paul Kerwin, Westlake Financial EVP and CFO, at the 18th Annual Auto Finance Summit. “For auto finance, we’re really in a new cycle and a new game,” Kerwin said. “The cycle started in 2009. Everything was pretty easy — there wasn’t […]
  • Monica Melton
  • November 20, 2018
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 Beyond Hallman Chevrolet: How Dealership Fraud Abuses Lenders and Consumers

Recently, Hallman Chevrolet in Erie, Pa. was fined $2.1 million when it admitted to a fraud scheme that involved inflating the price of vehicles sold to subprime consumers. However, the issue of price inflation (one might call it “power booking” or “price gouging”) happens widely. Attempts to inflate price at the time of sale by […]
  • Josh Wortman
  • October 15, 2018
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Has Auto Loan Fraud Replaced Car Theft in America?

How Artificial Intelligence and Fraud Strategies Can Stem the Rising Tide of Fraud When it comes to auto theft, our cars are safer and more protected than ever. Investments by manufacturers to deter theft with engine immobilizers, LoJack, keyless entry, and other advancements have worked. In fact, the cars most commonly stolen today are older models […]
  • Frank McKenna
  • August 17, 2018
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Due Diligence Instead of Damage Control: Stopping Auto Lending Fraud Before It Starts

The hard-won lessons of the 2008 financial crisis are more relevant today than ever. While the mortgage industry tightened regulations and lending standards post-crisis, the same cannot be said for the auto lending industry. The volume of auto lending has been steadily growing since 2010, and fraud is unfortunately on the rise, too. While no […]
  • Sagent Lending Technologies
  • April 10, 2018
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Sharing Secrets — Roadblocks to Creating a Dealer Fraud Detection Network

With dealer fraud reaching “higher than normal” levels for Pelican Auto Finance LLC, the subprime lender has been looking to develop a lender network to share dealer fraud insights, said Troy Cavallaro, the company’s chief executive. However, the company has been “unable to move the needle” on the project due to lack of lender participation […]
  • Natalie Mattila
  • January 5, 2017
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