America's Biggest Scam Yet? Here's What You Need To Know

(MENAFN- Live Mint) America's biggest scam yet? Scammers in the US who share tricks with one another on social media are pushing auto loan fraud to record levels in the world's largest economy. Bloomberg quoted a report from risk management firm Point Predictive on Tuesday, March 25, saying the dollar amount of car loans involving fraud grew by more than 16 per cent to $9.2 billion last year.

In dollar terms, loans account for about 1.3 per cent of all auto lending in the US. According to the report, this increase is much faster than the growth in total lending identified by the US Federal Reserve Bank of New York.

Also Read: Hyderabad woman falls victim to ₹2.29 lakh credit card fraud-learn how to stay safe from rising scams in India

Auto loan frauds skyrocket in the US

The rising number of swindlers is likely contributing to the record share of borrowers falling behind on their auto loan payments , as fraudulent loans are more likely to default. The report highlighted that one of the fastest-growing types of fraud was credit washing, where credit repair companies file false identity theft claims with credit bureaus or the Federal Trade Commission to help borrowers clear black marks from their credit histories.

According to the report, indicators of credit washing showed up in 1.7 per cent of loan applications last year, a 162 per cent increase over the prior year.“Credit repair scammers have become a cottage industry,” said Frank McKenna, chief strategist at Point Predictive and coauthor of the report.

MENAFN26032025007365015876ID1109357273