Cox Automotive Dealertrack Enhances Compliance Solution with Synthetic ID Fraud Alert

As a provider of integrated dealership technologies, Cox Automotive's Dealertrack platform is bolstering its compliance solutions by integrating an advanced feature designed to detect synthetic identity fraud. Synthetic identity fraud involves the use of fictitious identities concocted by combining real and fake personal information, creating a challenge for financial institutions and businesses in verifying identities. By implementing this alert system, Dealertrack aims to reinforce the security and trust in the vehicle financing process.

Combatting the Rise of Synthetic Identity Fraud

Synthetic identity fraud has been identified as the fastest-growing type of financial crime in the United States by the Federal Reserve. It not only affects lenders but also has the potential to undermine the credit system's integrity. Dealertrack's move to include a synthetic ID fraud alert within its compliance regimen is a proactive step to minimize risks for dealerships and finance sources, providing an additional layer of defense against this sophisticated form of fraud.

Enhancing the Dealertrack Compliance Solution

The Dealertrack Compliance solution offers a comprehensive suite of tools that assist dealers in navigating regulatory requirements. With the integration of the synthetic ID fraud alert, the system can now provide more robust real-time checks that scrutinize personal information submissions, aiming to identify irregularities that might suggest fabricated identities. This helps in reducing the risk of fraud and in streamlining legitimate transactions, ensuring a trustworthy financial environment for both buyers and dealers.

Strengthening Industry Standards

Dealertrack's initiative to advance identity verification processes aligns with broader industry efforts to establish strong standards and protect all parties involved in financial transactions. This enhancement is part of Cox Automotive's ongoing commitment to invest in technology that secures operations for its clientele while also meeting the high compliance expectations set by regulatory bodies.

Dealertrack's expanded compliance capabilities serve as a testament to the evolving nature of automotive finance and the imperative for constant innovation to combat emergent threats like synthetic identity fraud. These advancements contribute to a stable market and a secure financial ecosystem that benefits consumers and businesses alike.

Dealertrack, CoxAutomotive, FraudAlert