Fraud and identity theft in the automotive industry continue to make headlines with the result bringing significant monetary losses for dealers. In 2022, more than 60% of automotive dealerships filed cases of identity theft losing three or more vehicles, with 84% saying there has been a noticeable increase in identity fraud since the pandemic. Even though dealers understand that fraud is on the rise, 66% stated they lacked adequate identity fraud protections [1].
In a recent episode of the Used Car Dealer Podcast, host Zach Klempf, spoke with Kanchana Sundaram, Experian’s senior director of product and innovation for automotive, to discuss Fraud Protect, a new tool from Experian that helps dealers combat fraud.
During the interview, Kanchana highlighted how dealers can use Fraud Protect to better identify potentially fraudulent behavior, without slowing down the sales process and still maintaining a positive experience for both them and the consumer.
By leveraging the latest technology and advanced analytics, dealers are able to detect some of the most common fraud types that 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
The episode is now available across all major podcast platforms, click the link to watch: YouTube
To learn more about Fraud Protect, visit Experian’s auto fraud prevention solutions webpage.
For more information on the Used Car Dealer Podcast, visit https://www.sellyautomotive.com/podcast
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