Detected automotive finance fraud steps up a gear

The volume of detected automotive finance frauds has maintained its steady decline – all in the face of record-breaking new car sales.

Our analysis reveals the number of cases detected as fraudulent for automotive products has declined annually, from 32 frauds detected per 10,000 cases in Q4 2013, to 30 cases per 10,000 as at Q4 2014.*

It’s a general trend that’s been underway for around five years within Automotive finance. But Identity theft, in line elsewhere with the financial sector, has continued to rise. As a proportion of total detected automotive fraud, it increased from 13 per cent in Q4 2013, to 15 per cent of all detected automotive fraud in Q4 2014.

Fake applications and fronting continue to be attempted by fraudsters.

It’s also worth noting just how far the automotive sector has come in detecting and tackling fraud, given the UK car market has experienced its longest ever period of growth, thanks to three years of non-stop rising month-on-month sales.

Our latest fraud data is a clear testament to the sector’s determination to tackle criminal activity by investing in up-to-date detection systems and well-honed analysis. To find out more, simply click here.

* Experian works closely with National Hunter and Insurance Hunter, the UK’s leading fraud prevention systems, operated by Experian on behalf of members. The systems enable financial institutions to cross-match applications against more than 100 million previous application records in order to spot commonalities and anomalies that are potentially indicative of fraud for further investigation.