Fighting Auto Loan Fraud

Fraud experts recently reported that sophisticated scammers are increasingly making cars a new target for their schemes with auto loan fraud rising by more than $400M in 2022. 📈

Here’s what you need to know to stay protected:

🚩 Common Concerns

• Synthetic Identity Fraud — AKA using a stolen or manufactured identity, accounts for nearly 25% of all cases. Red flags include out-of-state driver's licenses, credit profile mismatches, sudden credit-report growth, and being an "authorized user" on someone else's line of credit.
• Income and Employment Misrepresentation — These remain the most common avenues of fraud with tricksters utilizing more sophisticated tactics like fake employers and advanced paystub forgeries. 43% of auto lenders cite them as the largest threat for 2023.
• Dealer Scrutiny — Lenders will quickly sever ties with dealers they suspect of falsifying records so accuracy and due diligence is crucial.

🛑 The Art of Prevention

• Education Matters — Consistent coaching and training for employees at all levels to spot fraud is critical and requires constant improvement of strategies, operations, and technological responses to combat evolving fraud patterns.
• Whack-a-Mole Challenge — Fraudsters gonna fraud, so there will always be new tactics to combat. It’s important to stay up-to-date with the latest trickster techniques to safeguard your dealership and keep one step ahead.