As the car buying process increasingly moves online, coupled with the evolution and migration of fraud to high-value targets, the automotive industry is under threat from newer, more sophisticated forms of identity fraud.
Image by mohamed Hassan via Pixabay
DALLAS – GIACT Systems, LLC, a leader in helping companies positively identify and authenticate customers, announced a new report, The Identity Verification Manual, developed to help automotive dealerships and captive auto finance identify ways to reduce auto theft and fraud with active identity verification. As the car buying process increasingly moves online, coupled with the evolution and migration of fraud to high-value targets, the automotive industry is under threat from newer, more sophisticated forms of identity fraud.
The automotive industry must redouble their identity verification efforts if they want to prevent further losses.
"With auto sales moving from in-person to online, fraudsters have begun to capitalize on the use of false and stolen identities. The result has been a spike in automotive fraud," said David Barnhardt, Chief Experience Officer at GIACT. "Dealerships and captive auto finance need to get ahead of fraud by implementing an enhanced identity verification process that acts in real-time to protect inventory and maintain a smooth sales process.”
The report details the latest identity fraud tactics being used to defraud and steal from automotive dealerships and captive auto finance companies as well as strategies to counter these evolving fraud tactics and properly verify the true identity of a customer before a loss can occur. The report also stresses the importance of a fast, reliable verification system that doesn't add undue friction.
"According to the Javelin Strategy & Research 2019 Identity Fraud Study, fraud has shifted its focus, targeting high-value items including automobiles. For 2018, Javelin estimates that identity fraud resulted in approximately $226 million in auto loan fraud losses. Meanwhile, incidences of car loan-related identity fraud doubled from 2017 to 2018, illustrating fraud's migration," said John Buzzard, Lead Analyst of Fraud & Security at Javelin Strategy & Research. "Relying on a credit report or driver's license, for example, isn't a strong indicator of a customer's true identity. The automotive industry must redouble their identity verification efforts if they want to prevent further losses.”
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