Buying a car can be an intricate process. Traditionally, you go to the dealership, find a car you like, then finance it and drive it home. Nowadays, the internet has complicated things a bit for the auto industry. While half of all car buyers still do everything in person, it is estimated that 43% complete at least some of the car buying process online. In fact, the remaining 7% of vehicle buyers purchase it entirely online.

Just as the ways to purchase a car have changed, the ways to finance have also changed. On the whole, people are financing with the dealer directly far more, over 19% more than last year. On the other hand, both credit unions and other financing methods fell by over 11% each. Regardless of the financing type, there is a risk of fraud in any financing or leasing agreement. 

Synthetic identities (Syn IDs) have increased 59% annually since 2020. Similarly, Syn ID fraud has risen by a whopping 98%, meaning $7.9 billion in losses for dealerships. Fortunately, companies like Equifax can easily prevent fraud with your dealership. These companies offer Know Your Customer (KYC) technology that presents real-time insights during the car-buying process. To make sure your dealership is protecting against Syn ID’s and other forms of fraud, taking advantage of Equifax is the way to go.