Despite how simple buying a car may seem, there’s quite a bit of nuance to it. 54% of consumers would buy from a dealership if the car buying experience was enjoyable, even if it isn’t the lowest price available. With the introduction of eCommerce and online purchases, it is especially crucial to capture people’s attention when they are physically at the dealership. So if you can convince someone to purchase the car, the challenges don’t stop there.
In recent years, synthetic identities (Syn ID’s) have become much more popular. These Syn ID’s have seen an annual increase of 59% since 2020. In 2023 alone, Syn ID fraud rose by 98% and cost just shy of $8 billion in losses. This can likely be attributed to the fact that loans and leases with a synthetic ID have a delinquency rate that is between 3 and 5 times higher than average. So how can you protect against this type of fraud?
Companies like Equifax offer pivotal Know Your Customer (KYC) technology. They offer insights into the customer during the shopping process, prior to any financing agreements. They also offer a variety of additional tools so that you can proactively stop fraud before it occurs. Regardless of what type of situation you find yourself in, having Equifax’s technology is sure to be the best way to prevent fraud for your business. Learn more about the auto industry trends of the future in the infographic below: