The number of people falsifying documents to get approved for auto loans has increased 5% year over year jumping to $7.7 billion in 2021.
CHARLOTTE, N.C. — Auto loan fraud in the U.S is a big issue that’s continuing to grow, with data from Point Predictive showing record-high levels of attempted vehicle loan fraud.
The number of people falsifying documents to get approved for auto loans has increased 5% year over year jumping to $7.7 billion in 2021.
Researchers said the pandemic laid the groundwork for rising fraud risk and people have learned to falsify information to get approved for things like unemployment and PPP loans.
Now they’re branching out to new avenues like the auto industry, causing some car dealers to take a closer look at documents before handing over the keys.
“One out of every three applicants we get is fraud,” David Humphrey with InstaCar said. “We have seen a lot more fake pay stubs people who have only been on their jobs a week but they say 6 months.”
