ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Check out the Latest in Tech That Uses Algorithms to Combat Fraud at Car Dealerships

Their partnership aims to enhance the Dealertrack compliance solution by integrating a new synthetic ID fraud indicator.
PUBLISHED FEB 10, 2024
Cover Image Source: Automative fraud prevention (representative image) | Photo by Pixabay | Pexels
Cover Image Source: Automative fraud prevention (representative image) | Photo by Pixabay | Pexels

Fraud remains a persistent challenge for businesses across sectors and the automotive sector isn't immune to this threat. Recognizing the need for innovative solutions, two industry giants, Cox Automotive and Equifax, have embarked on a collaborative journey to combat this menace. Their partnership aims to enhance the Dealertrack compliance solution by integrating a new synthetic ID fraud indicator, to bolster dealers' defenses against fraudulent transactions.

Image Source: Tara Winstead | Pexels
Fraud (representative image) | Pexels | Tara Winstead

The necessity for such measures is underscored by the alarming statistics revealed in Point Predictive's 2023 Auto Fraud Trends Report. The report highlighted a staggering $8.1 billion worth of fraud with a notable surge in the use of synthetic identities. This form of fraud involves the amalgamation of fabricated information with authentic data to construct deceptive credit profiles. As fraudsters employ increasingly sophisticated tactics, the automotive industry finds itself grappling with the repercussions.

The introduction of the Synthetic ID Fraud Alert represents a pivotal step in fortifying dealerships' defenses. Leveraging Equifax's cutting-edge technology, the solution utilizes patent-pending machine-learning algorithms and proprietary data sources to detect synthetic identity behavior. This proactive approach not only enhances fraud detection capabilities but also provides dealers with invaluable insights into identity verification (IDV), crucial for safeguarding their businesses.

Fraud | Pixabay | Geralt
Fraud alert (representative image) | Pixabay | Geralt

David Giovine, Finance Director at Subaru of Cherry Hill sheds light on the practical implications of this collaboration. Operating in the Tri-State Area, the dealership regularly interacts with customers from multiple states, complicating the ID verification process. The Synthetic ID Fraud Alert has emerged as an indispensable tool in navigating these complexities, offering enhanced protection for both the dealership and its clientele.

The significance of early detection and prevention cannot be overstated, particularly in an era marked by escalating fraud risks. Kait Gavin, Vice President of Operations at Cox Automotive underscores the urgency of equipping dealerships with robust tools to counter synthetic ID fraud effectively. By integrating Synthetic ID Fraud Alert into their workflows, dealers gain access to real-time alerts and risk assessment scores, which enable them to preemptively address threats.

Keep in mind these ways and stay away from getting scammed online|Pexels
Staying vigilant is crucial for avoiding online scams (representative image) | Pexels

As automotive retail continues to evolve, dealers are increasingly embracing online and omnichannel workflows to cater to diverse consumer preferences. However, this transition also amplifies the complexity of identifying and mitigating fraud risks. The firms together highlight the importance of adopting a Synthetic ID Fraud Alert as a cornerstone of a comprehensive fraud prevention strategy. By leveraging this technology, dealers can fortify their defenses, safeguarding their businesses from the financial ramifications of fraudulent activities.

In a landscape fraught with uncertainty, Synthetic ID Fraud Alert emerges as a beacon of hope, empowering dealerships to navigate the intricacies of fraud prevention with confidence. Beyond its immediate benefits, the solution represents a paradigm shift towards proactive risk management in the automotive industry. By prioritizing security and resilience, dealerships can forge ahead, secure in the knowledge that they possess the tools and insights needed to thwart fraudulent schemes effectively.

MORE ON MARKET REALIST
Pam, 83, said "I could have made a fortune, but it wasn’t to be. I’ve had a happier life than Marilyn ever had. I’ve no regrets."
21 hours ago
Early 1980s was a special era as several rare coins were minted then.
1 day ago
According to reports, the fisherman from Puerto Princesa found the item over a decade ago while he was fishing in the sea.
1 day ago
For decades, the painting was hung in a shabby frame in the living room.
1 day ago
The asteroid was discovered by Italian astronomer Annibale de Gasparis on March 17, 1852, who named it after the Greek Goddess of the soul.
1 day ago
In the video, another friend can be heard gasping and noting how she thought that Maddie was 'exaggerating.'
1 day ago
The man from New Jersey who was looking to save a few bucks, didn't know what luck had in store for him.
2 days ago
In 2004, Ashley Revell from London won $270,000 in one of the most stunning events in gambling history.
2 days ago
One of the rarest Rolex watches in the world was kept in a safety deposit for decades, unworn.
2 days ago
The "Rolling Stones" singer said leaving a part of the inheritance might "do some good in the world."
2 days ago
Inititally, reports claimed that it sold for $1.8 million which changed as the the dust cleared up.
2 days ago
The number was so large that it didn't even fit on a single line on the document.
2 days ago
Her new properties were estimated to be worth around $50 million.
3 days ago
He sued the lottery company for breach of contract, gross negligence and the infliction of emotional distress among other claims.
3 days ago
As of 2024, the iconic West Coast rapper is worth well over $160 million.
3 days ago
Taylor never knew he had won because the slot machine had malfunctioned.
3 days ago
"People were super welcoming and everyone wanted to have a coffee with me," she talked about the residents.
4 days ago
“It’s challenging, being an inventor,” Catherine Hettinger said.
4 days ago
The Facebook listing from is a contender for the weirdest rent agreement in history.
4 days ago
The "Bullet Train" actor made an unusual arrangement with the old widower.
4 days ago