Point Predictive recently launched its newest solution, BorrowerCheck 3.0, to help auto finance companies, dealerships and other companies involved in financial services.

The San Diego-based company that provides artificial intelligence solutions powered by more than 22 billion proprietary risk attributes said BorrowerCheck 3.0 is available via API or web browser and addresses the problem of fraud and identity theft in a more comprehensive way than existing identity solutions to help stop the billions in fraud losses that slip through controls today.

With BorrowerCheck 3.0, Point Predictive customers receive:

—A fraud score that precisely identifies the level of risk of identity theft, synthetic identity, income fabrication, fake employer use, and first-party fraud

—Validated ​Red Flag alerts for each fraud type that can be used to target stipulation and manual review strategies based on the type of risk that is present

—One time passcode (OTP) phone identity validation

—OFAC checks

—Comprehensive dashboard reporting

—Geo address survey questionnaires for enhanced verification

Point Predictive highlighted the solution’s new features include a way to enhance the validation of a borrower’s identity when red flags are present.  Currently, many finance companies will use a knowledge-based authentication (KBA) survey, which includes questions generally generated from public information (that can be accessed by fraudsters) that legitimate consumers have a hard time answering.

Company data revealed that up to 92% of fraudsters can successfully pass knowledge-based question tests compared to 46% of legitimate customers.

“From our experience, fraud is slipping through the cracks because companies approach the fraud problem too narrowly since most existing solutions have one purpose: alerting potential identity fraud,” Point Predictive CEO Tim Grace said in a news release.

“Fraud perpetrators are not only using stolen or synthetic identities, but they are also using fabricated income with forged paystubs, fake employers, and phone numbers that don’t belong to the real consumer,” Grace continued. “With BorrowerCheck 3.0, we address all these risks in a single, cost-effective solution.”

The solution leverages the power of Point Predictive’s proprietary risk data elements – data points that the company said are not available on any other data source, including the credit bureaus.

Additionally, the solution leverages select and key data points from public records and phone ownership, according to the company.

Point Predictive can perform a comprehensive identity and fraud assessment by incorporating four comprehensive checks into a single transaction — identity validation, income validation, employment validation, and phone validation.  The result is a solution that Point Predictive said can detect a majority of the fraud that lenders, dealers, and financial institutions are missing today with lower false positives and less customer friction.

“With BorrowerCheck 3.0, we are introducing a replacement to time-consuming KBA surveys that many legitimate borrowers fail, and most fraudsters can pass,” Point Predictive chief fraud strategist Frank McKenna said. “We’re using phone-based authentication instead.

Once we verify the borrower does own the phone, we can send a one-time passcode to that borrower to make sure that they are in possession of the phone they own,” McKenna continued. “If the borrower can provide the passcode, we know that identity theft is far less likely. This process saves an average of five minutes of customers’ time and is exponentially harder for an identity thief to fake. The result is legitimate customers pass through the checks in seconds, while fraudsters can get detected before the loan is approved.”