(MENAFN- GlobeNewsWire - Nasdaq) AI Fraud Protection technology Reduces Fraud Exposure by Approximately $1 Million Per Quarter So Far
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 $1 million per quarter so far.
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 $1 million each quarter so far. As we continue to optimize our technology, we expect to further reduce risks for our lending partners while supporting our continued growth in the subprime lending market.”
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 $85M to date from investors including Andreessen Horowitz, Craft Ventures, and NYCA Partners, among others.
Company Contact
Danny Bharwani
Chief Financial Officer
949-753-6811
Investor Relations Contact
Tom Colton and Alec Wilson
Gateway Group, Inc.
949-574-3860
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