So-called “synthetic” fraud, where thieves create a phony identity based in part on genuine customer information, is a growing problem in auto finance.
“Synthetic is a massive problem in the marketplace,” said Ken Allen, Senior Vice President of Identity and Fraud for Atlanta-based Equifax Inc., the consumer credit reporting agency.
Ironically, part of what’s driving identity thieves to go after auto loans is the fact that chip-equipped credit cards have made credit card fraud more difficult. That makes auto finance fraud a path of less resistance, experts said.
~Online criminals often seek out recent purchase information to defraud and steal identities
~The automotive industry relies on consumer trust — our identity protection and fraud detection solutions enhance trust and allow for an extra level of consumer security.
~Auto dealerships frequently copy customers’ driver’s licenses, Social Security cards, and other identifying information when helping them apply for loans or register new vehicles.
~If the dealership keeps this information on file, a breach of security within the dealership can make all previous customers vulnerable to identity theft. Using the information, they find, criminals can open fraudulent accounts, apply for credit, and commit other crimes.
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