Auto loan fraud grew over 16 percent in 2024. While fraud is still growing, risk premiums remain unchanged, indicating that investors in ABS backed by auto contracts are not concerned about these activities. According to Bloomberg, the rise of fraud can be linked to declining macroeconomic conditions. The main types of fraud include credit-washing and synthetic identity fraud as well as misreporting employment and income. Loans associated with fraud have a higher probability of default.
Auto Loan Scams Rise in 2024
Published on March 28, 2025
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