Automotive Industry Suffers from New Identity Fraud Threats, GIACT® Report Explains

DALLAS, Feb. 27, 2020 /PRNewswire/ -- GIACT Systems, LLC, the leader in helping companies positively identify and authenticate customers, today announced a new report, The Identity Verification Manual, developed to help automotive dealerships and captive auto finance identify ways to reduce auto theft and fraud with active identity verification. As the car buying process increasingly moves online, coupled with the evolution and migration of fraud to high-value targets, the automotive industry is under threat from newer, more sophisticated forms of identity fraud.

Click here to download the report

"With auto sales moving from in-person to online, fraudsters have begun to capitalize on the use of false and stolen identities. The result has been a spike in automotive fraud," said David Barnhardt, Chief Experience Officer at GIACT. "Dealerships and captive auto finance need to get ahead of fraud by implementing an enhanced identity verification process that acts in real-time to protect inventory and maintain a smooth sales process."

The report details the latest identity fraud tactics being used to defraud and steal from automotive dealerships and captive auto finance companies as well as strategies to counter these evolving fraud tactics and properly verify the true identity of a customer before a loss can occur. The report also stresses the importance of a fast, reliable verification system that doesn't add undue friction.

"According to the Javelin Strategy & Research 2019 Identity Fraud Study, fraud has shifted its focus, targeting high-value items including automobiles. For 2018, Javelin estimates that identity fraud resulted in approximately $226 million in auto loan fraud losses. Meanwhile, incidences of car loan-related identity fraud doubled from 2017 to 2018, illustrating fraud's migration," said John Buzzard, Lead Analyst of Fraud & Security at Javelin Strategy & Research. "Relying on a credit report or driver's license, for example, isn't a strong indicator of a customer's true identity. The automotive industry must redouble their identity verification efforts if they want to prevent further losses."

GIACT is the only financial technology provider that offers a complete set of enrollment, payment, identity, compliance and mobile solutions built on a single platform – the EPIC Platform^®. GIACT's industry leading identity solutions help companies validate and proactively monitor customer identity, using advanced sources that triangulate traditional and non-traditional personally identifiable information in real-time.

To download the white paper, click here.

About GIACT
GIACT^® has been helping companies verify valued customers since 2004. From financial to insurance, to retail, to solutions for your industry, GIACT offers customer intelligence for complete payment confidence. As the leader in providing real-time data to help companies mitigate payment risk and fraud, our OFAC screening, ID verification, account verification and authentication, and mobile verification solutions enable you to focus on providing unmatched customer experiences. Since our founding, we've processed billions of transactions for our more than 1,000 customers. For more information, visit www.giact.com or call 1-866-918-2409. Follow us on LinkedIn and Twitter.

SOURCE GIACT

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