Dealertrack Compliance Adds Fraud Indicator 

By Staff Writer February 05, 2024

Cox Automotive has enhanced the Dealertrack Compliance solution through the addition of a new Synthetic ID fraud indicator, which will help protect dealers against fraudulent transactions earlier in the F&I process. The new Synthetic ID Fraud Alert integrates with trusted technology from Equifax, using patent-pending machine-learning algorithms, coupled with proprietary data sources, to detect synthetic identity behaviors, offering additional peace of mind to auto dealers. 

“As automotive fraud exposure continues to grow, synthetic ID fraud is increasingly impacting the industry, so there has never been a more pressing need for advanced tools to protect dealers from associated risks,” stated Kait Gavin, vice president of operations, titling and F&I solutions, Cox Automotive. “Cox Automotive Dealertrack recognizes the importance of giving retailers insights into identity verification (IDV) so they may circumvent increasing instances of ever more sophisticated fraud. With this new Synthetic ID Fraud Alert, dealers can rely on advanced technology to implement IDV best practices in their transactions online or instore to safeguard their business.”

With the new offering dealers receive an alert when a customer may be using synthetic ID and get a risk level assessment score when pulling credit. This will assist dealers to:  

  • Better address fraud risk and establish a more secure end-to-end process for deals. 
  • Reinforce early validation of a consumer before progressing them through the financing process by adding an additional layer of security for fraud detection. 
  • Help protect their dealership from potential chargeback from lenders, which can be up to $15,000 per incident in potential losses. (Source: Synthetic Identify Fraud in the U.S. Payment System: A Review of Causes and Contributing Factors, The Federal Reserve, July 2019.) 
  • Gain peace of mind in an era of increasingly sophisticated fraud. 
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Last modified on Friday, 09 February 2024 11:50