2 fraud veterans found start-up to fight auto lending scams

Is auto lending becoming a breeding ground for fraud -- much like what occurred with mortgage loans during the housing bubble of the mid-2000s? Tim Grace and Frank McKenna, two San Diego fraud analytics software veterans, think there is increasing fraud risk in auto lending, fueled in part by a surge in subprime loans. They've co-founded PointPredictive, a start-up that taps machine learning algorithms to spot fishy loans. Joe Jackson, former head of Wells Fargo Ventures, is also a co-founder. The 13-employee firm said Wednesday it has raised its first round of venture funding from San Francisco-based Mosaik Partners.