There was a time when forging a paystub required a decent printer and some Photoshop skills. Now it requires a prompt.
Generative AI has handed scammers a powerful new tool in the auto lending world, enabling the creation of fake supporting documents, think paystubs, bank statements, employment verification letters, that are realistic enough to fool experienced underwriters. The result is a fraud crisis that’s costing US auto lenders billions and showing no signs of slowing down.
According to Point Predictive’s April 2026 report, total auto lending fraud exposure has hit $10.4 billion. That’s up from $9.2 billion in 2025, a jump of roughly 13% in a single year.
The numbers behind the forgery boom
First-party fraud, where borrowers or dealers use real identities paired with fabricated documentation, now accounts for 69% of total fraud losses. In dollar terms, that’s $7.2 billion.
