A new real-time service and a Bust-Out AI agent give auto lenders two ways to catch fraud rings stacking vehicle loans across multiple lenders simultaneously.

SAN DIEGO, Sept. 01, 2026 (GLOBE NEWSWIRE) -- Point Predictive today launched Bust-Out Alert, a new solution that provides real-time notifications of bust-out activity to participating auto lenders. Bust-Out Alert warns lenders the moment an application enters the underwriting process, with multiple lenders, within a short window. The service also includes a new Bust-Out AI agent that runs on Point Predictive's expansive proprietary data to identify hidden fraud rings across the entire consortium.

The company is launching the solution to take direct aim at a scheme that costs the auto industry an estimated $250 to $350 million in losses annually.

Bust-out fraud is simple but hard to catch. An applicant applies for loans at five or six lenders, banks, or credit unions within the same month. Every loan looks clean because the other tradelines will not appear on their credit for at least 30 days. Each of these lenders lacks insight into the applicant's true vehicle history during that brief window. By the time the new accounts post to a credit report, a person committing a bust-out has driven off with several vehicles without any intention of making a payment on any of them, and the losses land on every lender at the same time.

“Fraud rings have learned to submit their applications rapidly and in a short time period,” said Frank McKenna, Chief Innovation Officer at Point Predictive. “They hit multiple lenders inside a single month because they know they have a brief window to get as many cars as they can before the information will appear on their credit profile 30 to 45 days later. The only way to see the pattern is for lenders to collaborate and identify multi-funding activity within that window.”

Bust-Out Alert closes the reporting gap by enabling lenders to identify when an applicant has other loans funding simultaneously to their own loans. It sends real-time alerts the moment an applicant stacks loans, closing the reporting gap so lenders can stop losses before the vehicles disappear. Bust-Out Alert leverages Point Predictive's existing consortium, which covers $5 trillion in historical applications and adds 3 to 5 million new applications each month.

“Bust-out rings work because no single lender can see what an applicant is doing everywhere else,” said Tim Grace, CEO of Point Predictive. “Six lenders can look at the same applicant in the same week and each fund a loan. When lenders can learn about other lenders’ funding in real time, that blind spot closes, and the scheme falls apart. This is the kind of problem a consortium was built to solve, because no lender can fix it alone.”

Bust-Out Alert can be used for adverse action under the FCRA and is simple to set up. Lenders opt in to the service and can send their data and receive alerts via an API, or use a web interface to submit loans in batches or one by one.

A Bust-Out AI Agent adds a second layer of protection that does not depend on other lenders sharing their funded or in-progress loans. It is a specialized agent built to do one thing well: hunt for bust-out fraud.

The AI agent is continuously scanning millions of new and historical applications to identify bust-outs linked to larger fraud rings. It scans Point Predictive's proprietary consortium for the patterns that define a bust-out ring, shared identities, linked applications, and coordinated timing across institutions. It delivers specific findings and broader industry trends to participating partners each morning.

What sets the agent apart is where it runs and what it runs on. It operates behind Point Predictive's firewall and is connected directly to the same data repository that powers the company's solutions. It does not rely on third-party feeds or generic large language models pointed at public data. It is built on a consortium of $5 trillion in historical applications, growing by 3 to 5 million applications a month, that no other company holds. Because the agent sits on that data and within that infrastructure, it can answer questions and find connections across lenders that an outside tool cannot see.

In addition to launching the real-time solution, Point Predictive has established an industry working group after lenders asked the company to bring its consortium approach to the problem. Members work toward a proactive approach to solving bust-out fraud once and for all, rather than pushing it from one lender to the next.

“The lenders in our working group told us the answer is speed and an FCRA-compliant solution that allows them to automate the detection of bust-out fraud,” McKenna said. “Bust-Out Alert notifies lenders within 400ms as the loans are approved for funding, and the technology is already embedded in workflows where auto credit applications originate. Bust-Out AI Agent goes a step further. Lenders can ask it questions about their own applications and about bust-out fraud in general, and it works on our data every night, so every lender gets protection from the rings we can already see.”

For more information, contact info@pointpredictive.com.

About Point Predictive

Point Predictive powers a new level of lending confidence and speed through artificial intelligence, powerful data insight from our proprietary data repository, and decades of risk management expertise. The company's data and technology solutions quickly and accurately identify truthful and untruthful disclosures on loan applications. As a result, lenders can fund the majority of loans without requiring onerous documentation, such as pay stubs, utility bills, or bank statements, thereby improving funding rates and reducing early-payment default losses. Subsequently, borrowers receive loans more quickly, and lenders achieve a more profitable bottom line. For more information, please visit pointpredictive.com.

Media Contact: Jordan Zane, Jzane@PointPredictive.com