In 2024, vehicle-finance fraud increased by over 16%, reaching an estimated $9.2 billion. Experts predict this trend will continue to affect finance companies and dealerships.
The rise of AI-powered tools has made it easier for fraudsters to create synthetic identities and exploit financial systems. Factors such as rising inflation, tariff concerns, and bond market instability contribute to the growing fraud risks, with tighter margins making financial losses more impactful.
Synthetic identity theft is a significant factor in this trend. It involves combining real and fake information to create a new identity, accounting for 80–85% of all identity fraud cases. This type of theft is difficult to detect because it can bypass credit-monitoring tools that catch typical fraud. Consumers may not realize they are part of a synthetic identity scheme for months.
The average cost of vehicle-finance fraud is $21,000 per loan. For some dealers, recovering these losses could require up to ten sales. Many dealers and finance companies struggle to recover their assets. Andy Pollock, an expert in vehicle-finance fraud, explained to FICO: “The vehicle can be driven to a port, put into a container and shipped to another country. Or driven across the border to Mexico. Or sold. Whichever way, the vehicle is nearly impossible to recover.”
Digital-lending solution platforms facilitate identity verification and fraud detection; however, GPS management systems are crucial for asset protection. A GPS system provides real-time visibility into asset locations at any time.
Recovering assets obtained through vehicle-finance fraud can be challenging for companies without technology solutions in place. A GPS tracking platform allows for quicker asset recovery and improved cash flow.
Depending on the chosen GPS management system, additional features may include:
- Real-time tracking
- Tamper alerts
- Geofencing
- Starter interrupt
- Cell-assisted tracking
- Discreet battery-powered options
PassTime has supported over 10,000 businesses in protecting more than $10 billion in assets worldwide with a 99.6% device reliability rate over the past 30 years.
Their suite of vehicle tracking solutions offers flexibility and freedom for managing assets effectively:
- Encore: A wire-free, battery-powered GPS device.
- Select GPS: Provides ultimate control.
- Elite: Offers customizable telematics solutions.
Businesses concerned about vehicle-finance fraud should consider connecting with PassTime representatives for support.