Application Fraud in Auto Finance

Application fraud is a growing driver of early payment defaults in auto finance. Synthetic identities, fraud rings, and coordinated bust-out schemes are slipping through disconnected underwriting controls. This infographic outlines the scale of the threat and the connected capabilities lenders need to detect high-risk identities before they reach the portfolio.

• Synthetic identity fraud in U.S. auto loans hit a record $2 billion in the first half of 2024 alone

• Up to 70% of early payment defaults are linked to fraudulent applications, not affordability or credit risk

• Fragmented fraud controls let high-risk identities slip through underwriting undetected — connected, enterprise-wide intelligence is the fix