ATLANTA—Criminals are becoming more creative in their approach to commit synthetic ID fraud, and auto loans and leases are becoming targets.
While Federal Trade Commission data show just 1.7% of identity fraud complaints are related to auto loans or leases had been generated fraudulently, that’s double the 0.8% reported in 2015.
Equifax said it has been working with Oplogic, a company that manages and processes customer information with a simple ID scan, to help reduce unwanted threats stemming from synthetic ID fraud. CUToday.info had a special report on means of fighting synthetic ID fraud here.
Synthetic ID fraud occurs when a criminal combines real (usually stolen) and fake information to create a new identity. The two companies’ solutions recently helped stop an auto crime at a Michigan dealership.
The Solution
That solution, Driver’s Synthetic Identity Verification, is helping auto dealers reduce unwanted threats, Equifax said. In the attempted fraud scam, a woman visited a dealership with the intent to purchase a vehicle. When she presented her Texas driver’s license, the dealership concluded that the license was synthetic after running a license scan in the Oplogic Deal Operator CRM system. When the same person made a similar attempt shortly thereafter at a different dealership that uses Oplogic Deal Operator CRM, authorities made an arrest.
“The Oplogic Deal Operator CRM combined with Equifax fraud detection and identity validation tools is helping dealerships stop criminals in their showrooms before the crime occurs,” said John Parent, president of Oplogic. “This adds a much-needed level of protection for dealers and lenders.”
How It Works
Using this system, dealers can identify fraudulent credentials early in the sales process and before the test drive occurs. The process involves the dealership scanning the potential buyer’s driver’s license using Oplogic CRM software. During the scan, the license is verified against Equifax data and fraud tools to confirm identity.
“Fraudulent activity has become more complex over the years, and it continues to cost billions in lost revenue for dealers and lenders,” said Ken Allen, SVP, identity and fraud, Equifax. “Our data analytics platforms have also become much more sophisticated, and in partnering with leading solution providers such as Oplogic we are making great strides in reducing the number of fraudsters who attempt to create synthetic identities inside the showroom.”