Consumer Portfolio Services Partners with SentiLink to Enhance Fraud Prevention
Consumer Portfolio Services (CPSS) has partnered with SentiLink to enhance its fraud prevention capabilities. The collaboration, leveraging SentiLink's AI-driven identity verification and fraud detection technology, has already reduced fraud exposure by approximately $1 million per quarter. The system analyzes identity and fraud indicators to generate actionable reports, helping CPSS lend to verified borrowers and reduce lifetime portfolio losses. This technology implementation is particularly important given the rising fraud attempts in the subprime auto sector, supporting CPSS's growth strategy and risk management efforts.
Consumer Portfolio Services (CPSS) ha collaborato con SentiLink per potenziare le proprie capacità di prevenzione delle frodi. La collaborazione, che sfrutta la tecnologia di verifica dell'identità e rilevamento delle frodi basata sull'IA di SentiLink, ha già ridotto l'esposizione alle frodi di circa 1 milione di dollari a trimestre. Il sistema analizza gli indicatori di identità e frode per generare report azionabili, aiutando CPSS a prestare a debitori verificati e a ridurre le perdite di portafoglio a lungo termine. Questa implementazione tecnologica è particolarmente importante data l'aumento dei tentativi di frode nel settore automobilistico subprime, sostenendo la strategia di crescita e gli sforzi di gestione del rischio di CPSS.
Consumer Portfolio Services (CPSS) se ha asociado con SentiLink para mejorar sus capacidades de prevención de fraudes. La colaboración, que aprovecha la tecnología de verificación de identidad y detección de fraudes impulsada por IA de SentiLink, ya ha reducido la exposición al fraude en aproximadamente 1 millón de dólares por trimestre. El sistema analiza los indicadores de identidad y fraude para generar informes accionables, ayudando a CPSS a prestar a prestatarios verificados y a reducir las pérdidas del portafolio a lo largo del tiempo. Esta implementación tecnológica es especialmente importante dada el aumento de los intentos de fraude en el sector automovilístico subprime, apoyando la estrategia de crecimiento y los esfuerzos de gestión de riesgos de CPSS.
소비자 포트폴리오 서비스 (CPSS)는 사기 예방 능력을 강화하기 위해 SentiLink와 파트너십을 체결했습니다. 이 협력은 SentiLink의 AI 기반 신원 확인 및 사기 탐지 기술을 활용하며, 이미 분기당 약 100만 달러의 사기 노출을 줄이는 데 성공했습니다. 이 시스템은 신원 및 사기 지표를 분석하여 실행 가능한 보고서를 생성하며, CPSS가 검증된 차용자에게 대출하고 장기 포트폴리오 손실을 줄이는 데 도움을 줍니다. 이러한 기술 구현은 서브프라임 자동차 분야에서 사기 시도가 증가하고 있는 점을 감안할 때 특히 중요한 요소로, CPSS의 성장 전략 및 리스크 관리 노력에 기여하고 있습니다.
Consumer Portfolio Services (CPSS) a établi un partenariat avec SentiLink pour améliorer ses capacités de prévention des fraudes. Cette collaboration, qui tire parti de la vérification d'identité et de la technologie de détection des fraudes basée sur l'IA de SentiLink, a déjà réduit l'exposition à la fraude d'environ 1 million de dollars par trimestre. Le système analyse les indicateurs d'identité et de fraude pour générer des rapports exploitables, aidant CPSS à prêter à des emprunteurs vérifiés et à réduire les pertes de portefeuille à long terme. Cette mise en œuvre technologique est particulièrement importante compte tenu de l'augmentation des tentatives de fraude dans le secteur automobile subprime, soutenant ainsi la stratégie de croissance et les efforts de gestion des risques de CPSS.
Consumer Portfolio Services (CPSS) hat sich mit SentiLink zusammengeschlossen, um seine Betrugspräventionskapazitäten zu verbessern. Die Zusammenarbeit, die die KI-gesteuerte Identitätsprüfung und Betrugserkennungstechnologie von SentiLink nutzt, hat bereits die Betrugsrisiken um etwa 1 Million Dollar pro Quartal gesenkt. Das System analysiert Identitäts- und Betrugsindikatoren, um umsetzbare Berichte zu erstellen, die CPSS dabei helfen, an verifizierte Kreditnehmer zu verleihen und die langfristigen Portfolioverluste zu reduzieren. Diese technologische Implementierung ist besonders wichtig angesichts der zunehmenden Betrugsversuche im subprime Automobilsektor und unterstützt die Wachstumsstrategie sowie die Risikomanagementmaßnahmen von CPSS.
- Reduced fraud exposure by approximately $1 million per quarter
- Implementation of advanced AI fraud detection technology
- Enhanced risk management capabilities in subprime lending
- Operating in high-risk subprime auto sector with increasing fraud attempts
Insights
This partnership represents a significant technological advancement in CPS's risk management infrastructure. The
The implementation of AI-driven fraud detection in the subprime auto lending space is particularly crucial, as this sector traditionally experiences higher fraud rates than prime lending. SentiLink's technology not only provides immediate cost savings but also strengthens CPS's competitive position by improving loan quality and reducing lifetime portfolio losses. This enhanced risk management capability could lead to better borrowing terms for CPS and improved relationships with their lending partners.
The integration of SentiLink's fraud detection system addresses a critical vulnerability in subprime auto lending. The
The strategic value extends beyond direct cost savings - improved fraud detection leads to better portfolio performance metrics, potentially lowering the cost of capital and improving investor confidence. This technology investment positions CPS to better scale their operations while maintaining risk controls, a important factor for sustainable growth in the subprime lending market.
AI Fraud Protection Technology Reduces Fraud Exposure by Approximately
LAS VEGAS, NV, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”), a leader in providing indirect automobile financing to consumers, today announced that it has partnered with SentiLink, a leading provider of advanced identity verification and fraud detection solutions. The partnership enables CPS to improve its fraud prevention efforts while also saving the Company approximately
SentiLink’s AI-driven technology analyzes key identity and fraud indicators to generate actionable reports for CPS, helping the Company lend to legitimate, verified borrowers. This improvement in fraud detection directly supports CPS’s goal of significantly reducing lifetime portfolio losses, ultimately reinforcing financial performance.
“Fraud prevention is an increasingly vital component of our risk management strategy,” said Robert DeJarnette, VP of Risk Management at CPS. “With the rise in fraud attempts across the subprime auto sector, SentiLink’s technology will continue to be instrumental in helping us detect fraudulent activity early and reduce exposure within our portfolio.”
Mike Lavin, COO of CPS, added: “SentiLink’s fraud detection capabilities have already helped us lower our fraud exposure by over
Staying at the forefront of technology has become a key performance differentiator for CPS, enabling the Company to refine its underwriting processes, enhance dealer performance, and strengthen risk management. Through the thoughtful application of advanced AI and machine learning, CPS is well-positioned to drive sustained growth in the years ahead.
About Consumer Portfolio Services:
Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.
About SentiLink
SentiLink, the leader in identity verification technology, provides financial institutions and fintechs with best-in-class solutions to prevent synthetic fraud, identity theft, and emerging forms of first-party fraud, as well as access to the eCBSV SSN verification service. Founded in 2017 by Naftali Harris and Max Blumenfeld, creators of the risk and fraud systems at Affirm, SentiLink has raised
Company Contact
Danny Bharwani
Chief Financial Officer
949-753-6811
Investor Relations Contact
Tom Colton and Alec Wilson
Gateway Group, Inc.
949-574-3860
CPSS@gateway-grp.com
FAQ
How much has CPSS reduced fraud exposure through SentiLink partnership?
What technology is CPSS using for fraud prevention in 2024?
How does SentiLink's technology benefit CPSS's lending operations?
