As fraudsters become more sophisticated, more types of fraud are affecting auto finance. But rather than put the bulk of resources into emerging fraud types, auto lenders should develop a holistic approach to fighting fraud, experts say.
“There is a tendency for lenders to react to the fraud of the moment,” which for now is synthetic identity fraud, said Frank McKenna, chief strategist for Point Predictive.
Some lenders are targeting synthetic identity fraud rather than developing a holistic fraud management strategy, McKenna said. That’s not the most effective strategy.
Mike Gross, director of product innovation for global fraud and identity at Experian, agrees. “Fraud requires a layered approach,” Gross said. “You can’t just focus on one type of fraud, because the next day that bubble is going to move. Fraudsters are very quick to adapt and change their method of attack when the opportunity presents itself. The key is having multiple solutions in place, including identity.”
You can read the whole article by Hannah Lutz here – Holistic Fraud Strategies.