Equifax’s Ken Allen warns that “synthetic” fraud is a mounting problem for auto lenders. “The personal identifying information could be real. There are other components that are not real. It’s the hybrid of the two,” he explains. Auto finance’s growing appeal to identity thieves is partly due to increasingly fraud-resistant credit cards. While chip technology is a deterrent for criminals, experts say auto finance is a much more pliable target. Allen notes that thieves can successfully take out a fake auto loan by establishing what appears to be an authentic credit history. They set up credit accounts, buy relatively cheap goods and services, and make payments on time.
Forbes (06/26/18) Jim Henry