Protect Your Dealership from Synthetic Fraud
The Tactics Synthetic Fraudsters Use Against Dealerships
Fraudsters create “synthetic” identities by blending real and fake information. Common synthetic fraud methods include:
- Identity Compilation: Combining information from multiple people to form a new identity
- Identity Manipulation: Slightly altering an individual’s information to pass as a new identity
- Identity Fabrication: Using entirely fabricated personally identifiable information
As more of the car-buying process moves online, synthetic fraud continues to rise. Fraudsters can purchase vehicles and drive off the lot before dealerships are aware of an issue, leaving costly buybacks.
Over 60% of synthetic fraud exposure targets automotive dealerships.
In the first half of 2023, U.S. auto lenders faced $1.8 billion in synthetic identity exposure.
• Synthetic fraud instances rose 98% in 2023.
Don’t Be a Statistic – Act Now to Combat Synthetic Fraud
Synthetic fraud accounts for 80–85% of all identity fraud, according to the FTC. By Q4 2023, studies show that 1 in every 120 auto loan applications contained a fictitious credit profile. Fraudsters can net 20 times the cash value of a credit card on a vehicle, with an average loss of $24,000 per occurrence. With ProMax Synthetic Fraud Alerts preventing up to $45k in typical fraud risk exposure, your dealership can avoid becoming another costly statistic.
Synthetic Fraud is the fastest growing type of fraud in the U.S. and is 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
ProMax Synthetic Fraud Alerts provide real-time notifications of synthetic identity patterns. Integrated directly into your sales process, these alerts allow immediate review of potentially fraudulent applications.
- Compatible with all three major credit bureaus
- Detects synthetic ID behaviors across multiple entry points
- Enhances your dealership’s fraud prevention strategy as part of a comprehensive compliance suite
By stopping fraudulent transactions before they complete, dealerships using ProMax Complete can avoid up to $50,000 or more in potential FTC fines per violation.