Losses from car loan fraud soars above other debt, study says

When auto loans suffer losses they are “dramatically higher” than losses in other types of consumer credit products, according to a recent analysis by the credit bureau TransUnion.

The average auto loan fraud lost 21 times more than the average credit card fraud case, according to a recent analysis by the credit reporting agency, which reviewed performance across a variety of loans two years after they were made in 2023. Relative to unsecured personal loans, the average loss on each auto loan fraud was six times higher, the analysis found.

The higher losses in auto loans are largely because auto loans tend to be bigger than other unsecured personal loans or credit cards, the study’s two points of comparison, the analysis by TransUnion’s Satyan Merchant found.

One exception was auto loan