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® today 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.
To learn more about Fraud Protect, visit the Experian Booth (3113W) at the National Automobile Dealers Association (NADA) Show, February 1-4, 2024.
For those not attending the show, visit Experian’s auto fraud prevention solutions webpage to learn more.
About Experian
Experian is the world’s leading global information services company. During life’s big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organizations to prevent identity fraud and crime.
We have 22,000 people operating across 32 countries and every day we’re investing in new technologies, talented people, and innovation to help all our clients maximize every opportunity. With corporate headquarters in Dublin, Ireland, we are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group.
Experian and the Experian marks used herein are trademarks or registered trademarks of Experian and its affiliates. Other product and company names mentioned herein are the property of their respective owners.
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