How to Protect Yourself Against Synthetic Identities

In the current year, technology has become more and more seamless. Wanting a seamless experience has extended far beyond just technology, and car buying in the automotive industry is no exception. An estimated 54% of consumers would purchase from dealerships if they had a good car buying experience, even if the price wasn’t the lowest offered to them.

Unfortunately, technology is a double-edged sword. In recent years, synthetic identities (Syn IDs) have grown in popularity. Dating back to 2020, they have seen an annual growth of 59%. However, these Syn IDs are statistically a far greater risk as a loan applicant. Syn ID fraud rose by 98%, realizing $7.9 billion in losses. They also see a delinquency rate that is between 3 and 5 times higher than a non-Syn ID customer. So how can you protect your business from these Syn IDs?

Companies like Equifax make it easy to deter individuals with Syn ID’s from getting a financing agreement. They offer Know Your Customer (KYC) technology, which allows you to get insights into the customer during the shopping process. They also offer additional tools so you can understand the buying power and other financial metrics of prospective applicants. Regardless of what kind of dealership you are, the best way to prevent fraud from your auto finance agreements is with the help of Equifax.