We’re excited to share that Ken Luna, Executive Board Advisor at Gather and Director of Partnerships, was featured in Automotive News in a timely article covering the evolving threats of auto finance fraud—and how dealerships can stay ahead of them.
Ken spoke about the increasing danger of synthetic identity fraud and the limits of traditional tools. He sheds light on what’s actually working today and how dealers can protect themselves from costly losses.
Here’s Ken’s full interview from the article:
Q: What is the biggest auto finance fraud threat that dealerships are facing today, and what do those scams look like?
A: Fraudsters are getting even more sophisticated with synthetic fraud.
If a dealership is facing off with one of these people, then they are in serious trouble.
License scanner systems do not catch these people as they have already stolen the DMV info and matched it to the info on the license.
They pass the bureau checks with flying colors.
Pure database-type systems do not catch these folks either. Only a biometric check coupled with cross database verifications between identity and insurance data seem to be working.
Q: How can dealerships train or equip employees to combat those scams?
A: First: Use a non-obtrusive process that cross-checks insurance and identity information along with biometric license comparisons and liveness validity.
Second: Make sure the company offering the solutions has a guarantee that compensates for the loss of the car if the customer goes through the “process” but still winds up being a fraudster.
Third: Make sure these solutions integrate with the dealership systems for accurate recordkeeping of all the activity associated with the transaction.
Fraud isn't just a nuisance—it’s a growing, sophisticated threat that puts dealership profitability at risk. If you’d like to learn more about how Gather helps combat fraud, book a meeting on Ken’s calendar or reach out to him directly at ken@gather.technology; 321-262-3434.
Read the full article in Automotive News: Auto finance experts talk fraud threats