A Multi-Tiered Approach to Fighting Fraudsters in the Auto Industry

In today’s digital-centric world, fraudsters are leveraging vast amounts of digital content for the purpose of false information, financial fraud and phishing attacks. Using different web forums, marketplaces and social media channels across the internet, fraudsters create spam and scam attacks to trick everyday consumers into sharing sensitive information – later sold or used to steal rewards, store credit, or even cash and identities. 

Attacking Fraud Holistically

“Whether it’s Ransomware, loan stacking, loan fraud, payment fraud or something else, fraudsters don't take a singular approach to attacking businesses,” said Angelica Jeffreys, Vice President Sales Leader, Automotive Financial Services at Equifax. “Therefore, there's no such thing as a single fraud solution. Addressing the various forms of fraud requires auto lenders and dealers to leverage the right tools at each stage of the customer journey.” 

As a result, Equifax is now leveraging a multidimensional approach. Lenders and dealers today are leveraging key Equifax solutions that provide a holistic view of their fraud risk, correlated across a growing number of channels. 

Sophisticated Fraud Alerts 

As organizations shift more of their operations to digital, fraudsters are focusing more of their activities on things like new account fraud and often creating new, fraudulent identities or Synthetic Identities. “Synthetic identity fraud is built on the foundation of a fictitious identity, often created with a combination of real data and fabricated information,” added Jeffreys. Fraudsters then attempt to gain credit with the fictitious identity to monetize it.  

Lenders and dealers today are leveraging tools like Equifax FraudIQ Identity Alerts that can help protect businesses from losses associated with synthetic identity fraud while minimizing false positives. Delivered in batch or real-time, the alerts use patent-pending ML algorithms to detect synthetic identity behaviors and patterns at various entry points. 

Advanced Identification & Payment Solutions

Mobile devices are the new normal today for on-the-go consumers. The changes in technology and offerings to accommodate mobile consumers drive even higher expectations to transact with ease. If their experience aligns with their expectation, consumers are more likely to complete transactions and repeat them. 

Consumers expect a seamless experience online. When they encounter friction in a transaction, they tend to abandon it. This leads to a dual loss — of revenue and of the opportunity to gather valuable consumer insights. As such, lenders and dealers are using Equifax InstaTouchID API-based payment enablement tools that streamline the way consumers make online payments. These businesses can provide real-time payment options leveraging a suite of sophisticated data for the consumer while limiting risk of card-not-present fraud. 

Aside from payment options themselves, lenders and dealers are now leveraging sophisticated data from Equifax and The Work Number® database to verify and authenticate a consumer’s identity. This allows for pre-population of consumer data during online checkout or form completion, providing a simpler experience with less friction. 

Fraudsters know there is no single-source tactic to steal a victim’s identity or penetrate the inner system of a business. Businesses involved in the automotive industry are also realizing that there is no single-source tactic to fraud prevention and are now taking important steps to cover all possible bases to thwart the rising threat of fraudulent activity.