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Slippery Synthetic Fraud Increasingly Occurring in Dealerships
The harsh reality of the crime known as synthetic identity fraud threatening auto dealerships is how damaging it can be if these fraudsters are successful without detection.
Synthetic fraud in 2019 was costly to dealers and their lenders - $69 million. The evidence we see, which is supported by Experian and others, is that incidents of synthetic fraud are on the upswing.
My advice is to take heed against this risk and learn how to protect your dealership from this hard-to-detect (and remedy) crime.
This crime is a different type of identity fraud. It is not perpetrated by run-of-the-mill cheaters, the consumer hoping to shine up his or her buy-ability by fudging work history or income.
Instead, these fraudsters present having the right stuff to verify their identity and creditworthiness – the type of buyer that seems a shoe-in. The problem is, the social security number, employment history, credit, address and other forms of I.D. presented isn’t theirs – it’s a homogenization of yours, mine and your granddaughter’s.
The Carnegie Mellon CyLab reports stolen children’s SSNs are used for synthetic frauds 51 times the rate of adults because of the “unique value of unused Social Security numbers.”
Unless your dealership is using synthetic fraud detection technology, it’s unlikely that even the most diligent finance director will catch on when the dealership is being defrauded this way.
Then, with the deal done, the new “owner” drives off having no intention of paying the loan – and laughing on their way knowing he or she has left behind no tracks.
Stop this Fraud
Some dealers mistakenly believe that the Red Flag identification methods detect synthetic fraud; Red Flag does not. These fraudsters have built/created credit files that are in line with the identity they are presenting at the point of sale. To isolate synthetic fraud, the detection technology must go deep into the “buyer’s” credit history to identify unusual credit behaviors and relationships – for instance, who else is listed on the credit history that might foretell of manipulation.
Synthetic fraud protection offered by 700Credit compliance software, for instance, detects such identity fabrications and alerts F&I. Thus notified, the manager should ask the buyer for more clarification or proof of identity before proceeding with the transaction. 
Asking suspected buyers tough identification questions or to sign documents allowing the dealership to have the presenting SSN verified by the Social Security Administration will usually send them packing. Yes, this questioning could offend some legitimate buyers, but dealers agree that risk is manageable given the value of the asset in consideration.
As more vehicles are financed and purchased online through digital dealerships, dealers’ ability to sift out synthetic crime from these channels will be increasingly valuable to them, their lenders and their mutual, honest customers. Dealers are encouraged to take another look at available technologies to identify synthetic fraud when it is practiced against their dealership.
Driving Sales
700Credit Announces Integration with AutoAlert to Provide Prescreen Services in the Service Lane
Farmington Hills, MI – December 18, 2019 – 700 Credit, LLC, the automotive industry’s leading provider of credit reports, compliance solutions and consumer pre-qualification products, today announced its integration alliance with AutoAlert, the creator of the automotive industry’s leading software and communication solutions. With this new alliance, AutoAlert has incorporated QuickScreen, 700Credit’s prescreen solution, into their AutoAlert CreditConvert platform to increase sales opportunities sourced from a dealer’s service lane business.
The benefit to utilizing prescreen data within the CreditConvert platform is that it allows dealers to identify conquest customers who are in a good equity position and may be ready for a trade. 700Credit leverages its VIN Match technology to match the vehicle in for service with the auto tradeline information from the consumers credit file. This allows AutoAlert to both identify the estimated payoff amount and equity in the vehicle to then provide a customer with a more accurate quote on a new vehicle.
“Prescreen data allows dealers to provide customers with payment quotes in the service lane,” noted Ken Hill, Managing Director of 700Credit. “By pulling soft-pull data in the service lane, dealers can identify vehicles that are in a good equity position or have high interest rates, so they can put customers in a new vehicle at lower rates, potentially lowering their monthly payments. Soft-pull data is particularly useful for conquest customers when the vehicle in service was not purchased at that store,” added Hill.
“The service lane is an incredible, but often overlooked, opportunity for sales and customer growth,” says Julian Johnston, AutoAlert’s VP of Innovation and Platform Philosophy. “700Credit unlocks the door for AutoAlert to build relevant connections in the service drive with their service conquest customers. Pair that with AutoAlert’s Customer Experience Management (CXM) platform, and these former service-only customers now become lifelong advocates for the dealership.
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About 700Credit
700Credit is the automotive industry’s leading provider of credit reports, compliance products and prescreen services. The company’s product and service offerings include credit reports, dealer-facing prescreen and consumer-facing pre-qualification platforms, OFAC compliance, Identity Verification solutions, score disclosure notices, adverse action notices and more. 700Credit’s goal is to provide its clients with the highest quality data in a compliant framework in the most efficient manner possible. To learn more, visit 700credit.com.
About AutoAlert
Since 2002, AutoAlert has continuously innovated, evolving from a single software program to a full customer experience system. Today, our purpose-built automotive intelligence platform leverages multiple patents to deliver insight-driven outcomes and connect OEM, captive finance, and dealer operations to engage customers in a meaningful way. Visit us and read our blog at AutoAlert.com.
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Driving Sales
700Credit Announces Integration with ABCOA’s Deal Pack® DMS
Farmington Hills, Michigan – April 30, 2019. The process for buying or leasing a vehicle is still time consuming for customers and for a dealership’s sales team. Many dealerships have asked, “How can we get rid of double-entry and multiple screens when working a deal?”
ABCoA has integrated 700Credit’s credit, compliance and pre-screen platforms into the
Deal Pack® DMS. This means that full credit reports and prescreen (soft pull) reports can be accessed through one platform - creating a smoother, more efficient workflow.
ABCoA Deal Pack® is a Dealer Management Software (DMS) which helps dealerships and finance companies work a deal faster while remaining compliant. Deal Pack® offers sales, leasing, finance, and service & parts with built-in, real-time accounting- allowing a dealer to manage all facets of their operation in one single software. It simplifies daily tasks and eliminates duplicate data entry.
“The integration between the Deal Pack platform and our credit, prescreen and compliance solutions provide dealers with a seamless workflow as they move through the desking and sales process,” said Ken Hill, Managing Director of 700Credit. “ABCoA provides an all-in-one DMS solution for independent, BHPH and LHPH dealers, and we are excited to be a part of their solution.”
“700Credit offers a robust credit, compliance, prescreen and consumer pre-qualification solution that adds value for our clients in the subprime industry,” said Jonathan Hedy, President of ABCoA. “Our integration is seamless, and I am excited to offer 700Credit within Deal Pack.”
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About 700Credit
700Credit is the automotive industry’s leading provider of credit reports, compliance products and prescreen credit services. The company’s offerings include: dealer-facing prescreen and consumer-facing pre-qualification platforms, credit reports, OFAC compliance, Red Flag solutions, score disclosure notices, adverse action notices, MLA, Synthetic Fraud detection and more. 700Creditprovides its clients with the highest quality data in a compliant framework in the most efficient manner. For more information, visit www.700credit.com.
About ABCOA
Founded in 1983, ABCoA developed the Deal Pack software for used car dealerships and finance companies. Deal Pack is an all-in-one dealer and lender management software offering integrated payment portal, CRM, sales, leasing, finance, and service & parts. Deal Pack is a single software that handles buy here pay here, lease here pay here, retail, leasing, floor planning, and wholesale deals with real-time accounting and consolidated financials for multiple-branch operations. Deal Pack users receive free training, free updates, and free support for life. Call 800-526-5832 or visit www.dealpack.com for more information and to schedule a risk-free demo.
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Driving Sales
700Credit Integrates with AppOne® Dealer Portal to Connect Lenders to Dealers
Farmington Hills, Michigan – April 23, 2019 – 700Credit, LLC, the auto industry’s leader in providing credit reports, compliance solutions and soft-pull products and services, today announced that AppOne® has integrated 700Credit’s credit and compliance platform within the AppOne Dealer Portal, which connects dealers and lenders to automate and accelerate the traditional indirect lending credit application submission and loan documentation processes.
AppOne is a web-based platform that connects recreational vehicle, marine, and power sport dealers with lenders. AppOne gives dealers the ability to submit credit applications to lenders and prepare and print lender specific loan document packages, eliminating the task of forms management and greatly reducing the chance of returned contacts and re-contracting.
“The AppOne platform provides the workflow and technology to allow dealers to get deals done more efficiently,” said Ken Hill, Managing Director of 700Credit. “The integration between the AppOne platform and our credit and compliance solutions provide dealers with a seamless workflow, providing efficiencies as they move through the lending process.”
“We are excited to offer 700Credit services to the thousands of marine, RV, and power sport dealers using the AppOne Dealer Portal,” said Chet Heughan, senior sales director at AppOne. “The suite of services offered by 700Credit goes far beyond simple access to credit bureaus and adds true value and efficiency to the dealer’s sales and compliance processes.”
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About 700Credit
700Credit is the automotive industry’s leading provider of credit reports, compliance products and prescreen services. The company’s product and service offering includes: credit reports, dealer-facing prescreen and consumer-facing pre-qualification platforms, OFAC compliance, Red Flag solutions, score disclosure notices, adverse action notices, MLA, Synthetic Fraud detection and more. 700Credit’s goal is to provide its clients with the highest quality data in a compliant framework in the most efficient manner possible. For more information about 700Credit, visit www.700credit.com.
About AppOne
AppOne is a leading provider of workflow and productivity solutions, services, and specialized software to streamline the indirect lending process for lenders, service companies, manufacturers, and dealers (e.g. recreational vehicle ("RV"), marine and power sports). The company is headquartered in St. Cloud, Minnesota. (https://www.appone.net/)
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Driving Sales
700Credit Gains Certified Provider Status with Fox Dealer
Farmington Hills, Michigan – April 17, 2019 – 700 Credit, LLC, the automotive industry’s leading provider of credit reports, compliance solutions, soft-pull products and services, has gained certified provider status from Fox Dealer for our web-based consumer pre-qualification application (QuickQualify) and our full credit application (QuickApplication). Now dealers who use Fox Dealer to build and manage their websites can easily add these two solutions to increase sales and finance leads.
QuickQualify provides dealerships with a consumer’s current FICO score and full prequalification credit profile to help in qualifying consumers for loans. The engaging video and simple data form do not require a SSN or DOB which helps drive more leads from a dealer’s website as consumers shop for vehicles.
QuickApplication replaces traditional credit applications minimizing the number of fields required to pull credit versus a standard credit application.
“We are very pleased that Fox Dealer, recognized as being one of the fastest growing companies in automotive, has certified our web-based solutions for their award-winning dealer websites,” said Ken Hill, Managing Director of 700Credit.
“Providing the consumer with an opportunity to get pre-qualified for a loan while they are on a dealer’s website is a necessary part of the digital retailing process today,” said GianCarlo Alabastro, CEO of Fox Dealer. “Because they are leaders in this space, we have partnered with 700Credit to provide soft-pull technology to help our dealers capture more leads. Dealers will see current credit data so they can close more deals.”
For more information on the partnership, contact: 866-273-3848.
About 700Credit
700Credit is the automotive industry’s leading provider of credit reports, compliance products and prescreen credit services. The company’s offerings include: dealer-facing prescreen and consumer-facing pre-qualification platforms, credit reports, OFAC compliance, ID Verification solutions, Synthetic Fraud detection, MLA, score disclosure notices, adverse action notices and more. 700Credit provides its clients with the highest quality data in a compliant framework in the most efficient manner. For more information, visit www.700credit.com.
About Fox Dealer
Fox Dealer is a personalized marketing company where powerful digital technology meets white glove customer service. Fox specializes in custom responsive websites, stunning creative design, and cutting-edge digital marketing. As a Google Premier Partner and the go-to provider for many high-performance dealerships, the Fox name is quickly becoming synonymous with excellence.
Contact:
April Rain
Chief Marketing Officer
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