Auto Lending Industry Is New Frontier for Synthetic ID FraudTransUnion's Jason Lord on How Banks, Lenders Can Manage Expanding Identity Theft
Synthetic ID fraud is nothing new, but it is expanding beyond fraudulent bank accounts to identity scams for auto loans. Many organizations fail to understand the link between data breaches and fraudulent IDs, said Jason Lord, vice president of product marketing for fraud and identity solutions at TransUnion.
"More than ever, the data breaches are targeting insurance in healthcare and government, but then the same data is being used in other locations. The auto loan industry is being heavily hit this year as well," Lord said.
According to Lord, automotive loan fraud increased 38% over the past year and has been on the rise for the past three years. "This emerging trend in auto fraud can be attributed to the appeal of high credit limits and the ease of securing online auto loans without the need for in-person dealership visits," he said.
In this video interview with Information Security Media Group, Lord also discussed:
- Why synthetic ID fraud continues to miss detection;
- Why the auto lending industry is such an appealing target for fraudsters;
- How AI is being used to identify synthetic IDs.
Lord, who leads global fraud solutions at TransUnion, is a 15-year veteran of marketing and fraud technology. He previously led teams for Neustar and PointRoll.