Protect Your Dealership from Synthetic Fraud
How Synthetic Fraudsters Target Dealerships
Synthetic Fraud is a newer, sophisticated type of identity theft where a fraudster uses a blend of real and fake information to create a new, ‘synthetic’ identity. There are three main ways that this fraud is committed:
- Identity compilation: Multiple people’s information is compiled together to create a new identity
- Identity manipulation: An individual’s personally identifiable information is altered slightly and passed off as a new identity
- Identity fabrication: A fake identity is created using fake personally identifiable information
As more of the sales process moves online, instances of fraud continue to rise in the automotive industry— fraudsters can purchase a vehicle and drive it off the lot before you’re made aware there’s an issue, leaving you with the costly buyback.
Over 60% of all Synthetic Fraud exposure is focused on automotive.
In the first half of 2023, impact of synthetic identity exposure reached $1.8B for U.S. auto lenders.
In 2023, instances of synthetic fraud rose 98%. It is the fastest growing type of fraud.
Don’t Be a Statistic – Combat Synthetic Fraud
According to studies by the FTC, Synthetic Fraud currently accounts for 80-85 percent of all identity fraud. Point Predictive completed a study indicating that by the fourth quarter of 2023, a fictitious credit profile was submitted in 1 of every 120 auto loan applications.
Protect your dealership from fraud with built-in safeguards. NCC’s Synthetic Fraud Alerts offer a state-of-the-art solution, allowing you to quickly identify and assess potential fraud risks. Compatible with all three credit bureaus, this affordable tool provides real-time protection, helping you keep fraudsters out and your dealership secure.
Synthetic Fraud is the fastest growing type of fraud in the U.S. and a major problem for auto dealers because fraudsters can net 20X the cash value of a credit card on a vehicle. On average, 1 in 120 applications may have fraudulent information leading to a problem after loan funding, at an average loss of $24,000 per occurrence.
Synthetic Fraud Alerts Help Keep Your Dealership Safe
NCC Synthetic Fraud Alerts provide real-time notifications of synthetic identity patterns, prompting immediate manual reviews at the dealership. Integrated directly into your sales process, these alerts analyze every customer with advanced detection tools, helping to identify synthetic ID behaviors at multiple entry points.
As part of NCC’s comprehensive Compliance Failsafe Suite, these alerts enhance your dealership’s fraud prevention strategy.