American Cycle Finance looks to combat first-party fraud
30% of fraudulent personal loan applications showed signs of first-party fraud
NEW YORK
Aug 10, 2023
by Johnnie Martinez II • Powersports Finance News
Motorcycle financier American Cycle Finance has begun to address a rise in first-party fraud amid elevated interest rates and tight credit conditions.
Fighting first-party fraud requires robust information communication between lenders and vendors. American Cycle Finance uses two baseline tests to combat first-party fraud, Richard Snyder, director of credit, said during AI-powered underwriting platform Scienaptic AI’s July 27 webinar.
The lender’s first baseline test checks for potentially fraudulent activities and credit scores that warrant an automatic decline. The second test assesses possible fraudulent activities and credit scores that require more information from the dealer and an underwriting review, Snyder said.