With more of the vehicle buying journey shifting online and vehicle prices remaining at elevated levels, fraudsters are targeting the automotive industry at an increasing rate. To address the rising threat, Experian has announced the launch of Fraud Protect, a web-based application that helps automotive dealers detect and prevent fraud while maintaining a positive shopping experience for the consumer.
According to a recent Experian report, nearly 70% of businesses reported that fraud losses have increased in recent years. Among the most common fraud schemes that dealerships experience include:
• Third-party fraud: Fraudsters steal an individual’s identity to purchase a vehicle
• First-party fraud: A person knowingly misrepresents their identity or provides false information, often with the intention of not paying for the vehicle
• Synthetic identity fraud: Fraudsters create fake identities and build credit profiles over time before using them to finance a vehicle they do not intend to pay for
“As fraudsters become more sophisticated and opportunistic, automotive dealers need to leverage the latest technology and advanced analytics to mitigate potential fraud risk,” said John Gray, Experian’s president of automotive, North America. “Not all fraud is perpetrated equally. Fraud Protect aims to help dealerships identify the most common fraud schemes and empowers them to take the most appropriate action to protect their portfolios and their bottom line.”
How It Works
Fraud Protect allows automotive dealers to send customers — both online and in-person — a secure, dealer-specific URL via text, email or QR code. Once customers provide identity documentation, the information is cross-referenced against a wide array of data assets, including historical identity data and credit usage patterns, to identify potentially suspicious activity.
The tool uses artificial intelligence to provide fraudulent activity alerts with easy-to-understand icons and scores, empowering automotive dealers to make more informed decisions and mitigate portfolio risk.
Visit Experian’s auto fraud prevention solutions webpage to learn more.
