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

Experian Launches Cutting-edge Tool to Enhance Fraud Protection in the Auto Sales Industry

The tool can help auto dealers detect and prevent fraud attempts against their customers.
PUBLISHED FEB 8, 2024
Cover Image Source: Sale signs lie on vehicles at a General Motors Chevrolet dealership | Photo by Bill Pugliano | Getty Images
Cover Image Source: Sale signs lie on vehicles at a General Motors Chevrolet dealership | Photo by Bill Pugliano | Getty Images

As car purchases increasingly move to online platforms, scammers are exploiting this trend with new fraud tactics. In response to the growing threat of online scams, information services company Experian has introduced a fraud prevention tool called Fraud Protect specifically designed for car dealers. This tool aims to enhance security measures, safeguarding the online car purchasing experience and protecting both customers and dealerships from fraudulent activities.

Image Source: Pexels|Photo by Antoni Shkraba
Image Source: Pexels | Photo by Antoni Shkraba

Scammers, adopting a tech-savvy approach, are increasingly targeting businesses with an online presence, with the automotive industry being an easy victim. According to a recent report by Experian, nearly 70% of businesses in various sectors have reported losses due to fraud in recent years. In the automotive industry, common fraud scenarios include scammers forging documents, stealing identities to make vehicle purchases, or misrepresenting identities during dealership visits.

Employing sophisticated tactics, these fraudsters send fake payment confirmation emails to deceive car dealers. In this scenario, scammers make it appear that the money has been debited from the customer and is on its way to the dealership's account. To avoid disrupting the customer's experience, dealerships may unwittingly allow the scammer to take possession of the vehicle. Even used car dealers are not safe, as scammers manipulate odometers and perform minor repairs to conceal significant damage, making it challenging for dealers to accurately assess a vehicle's value.

Look at why GenZ only prefer purchasing things online and how they are harming their pocket by purchasing cars online|Pexels|Photo by Gustavo Fring
Image Source: Pexels | Photo by Gustavo Fring

To address the rising threat of fraud in the automotive industry, Experian has introduced Fraud Protect for car dealerships. This innovative fraud prevention tool incorporates artificial intelligence at its core, utilizing advanced analytics and extensive datasets. Car dealers can send specific URLs to customers through text messages, email, or QR codes, prompting them to upload identity verification documents. Fraud Protect then validates these documents, cross-referencing historical records and analyzing credit histories. The application provides scores and raises alerts when suspicious patterns are detected.

John Gray, President of the automotive division of Experian for North America, says, "Not all fraud is perpetrated equally. Fraud Protect aims to help dealerships identify the most common fraud schemes and empowers them to take the most appropriate action to protect their portfolios and their bottom line." While the application is adept at safeguarding against common types of fraud, it serves as a tool to empower car dealerships in making informed decisions, recognizing that some clever schemes may still pose a risk.

Image Source: Teona Swift/Pexels
Image Source: Photo by Teona Swift | Pexels

"As fraudsters become more sophisticated and opportunistic, automotive dealers need to leverage the latest technology and advanced analytics to mitigate potential fraud risk," Grey added. Even though the application is quite smart, it can only safeguard against a few common types of fraud in the market. It is then up to the car dealer to take the final call.

MORE ON MARKET REALIST
The Sharks felt that the founder of Besomebody didn't have the "capacity to listen."
8 hours ago
Jennings shared how Trebek showed great resillience and showmanship during his last days on the show.
9 hours ago
The contestant, Staci Urban put up a great show to win over $60,000 in one night.
12 hours ago
The TikToker warned fellow shoppers about the risks of infection from the salmon.
1 day ago
With four sharks eager to invest, the founder of Kinfield knew how to get two of them to team up.
1 day ago
Shanquetta Cato, who participated in the 'Teacher's Week' did 'not get lucky' on the show.
1 day ago
After his book expert, Rebecca, raved about the rare book, the pawn shop boss knew he had to make a deal.
1 day ago
At one point, the host was begging the players to give just one sensible answer.
1 day ago
The long and difficult Bonus Round that cost Toya Johnson-Moore and Dionna Houston dearly.
2 days ago
Cuban swooped in to save Alexander Simone, the founder of ProntoBev from Mr Wonderful's greed.
2 days ago
The man who brought the box on his shoulder had no idea that it was a relic of the American Revolutionary War.
2 days ago
Harrison got a great deal for the historically significant document.
2 days ago
When the founders of Flated hesitated to close the deal, all the other Sharks came together.
2 days ago
TikTok creator, Crissy shared a little win for all the short shoppers out there.
3 days ago
The player, Lisa Thomas's phenomenal comeback after falling behind initially.
3 days ago
While Harrison wanted to get the Steve McQueen owned 1940's Indian Bike, he couldn't make a deal.
3 days ago
While he has a spotless track record on screen, Jennings loves to have fun behind the scenes.
4 days ago
The contestant, Desiree Kramer pulled off a stunning sub-two second win in the finale.
4 days ago
The painting from former NFL Player Ernie Barnes turned out to be one of the most valuable pieces.
4 days ago
Contestant Eleni Kapetanakis faced a rather unusual 'Place' category puzzle on the show.
4 days ago