Just when you think you’ve caught up with fraud prevention, a new disrupter enters the scene. The latest security threat? Generative AI and fraud—especially as AI is used to aid synthetic identity fraud. This new advance in fraud might not be widespread yet, but there has already been a significant uptick in fraud since recent advances in generative AI.
With the extent to which generative AI could increase auto-finance fraud and other fraudulent activity, now is the time to prepare for this looming threat. Wireless GPS tracking is one of your strongest lines of defense.
To say fraud is on the rise is an understatement. For example, attempts at account-takeover fraud (gaining unauthorized access to users’ accounts) in Q2 2023 jumped by 354% year-over-year, resulting in a predicted $635 billion in losses in 2023. Especially alarming to buy here, pay here and franchise dealerships is that these attacks skyrocketed in the fintech industry alone by a staggering 808% in that period. According to Point Predictive, auto loan fraud is four times greater in 2022 than in 2010—and synthetic identity fraud accounts for 20% of that.
This puts dealerships, finance companies, credit unions and their financial partners in danger of financing that can’t be recovered and lost assets. What’s more, 24% of consumers believe that the business where a fraudulent purchase was made should be held responsible, presenting a liability from consumers who are victims of this identity theft.
This jump coincides with recent advances in generative AI tools like ChatGPT. Generative AI allows fraudsters to create text content, manipulate image and videos, simulate human voices, forge documents and assume false identities—and to do so rapidly, convincingly and at scale like never before.
Of particular concern to businesses is synthetic identity theft, a form of financial fraud that combines the stolen information of a real person, like their Social Security number, with other falsified personal information to establish a new identity. With the help of powerful generative AI tools to fabricate increasingly seamless identities, these false identities can be harder than ever to spot. That includes not just faking individual consumer identities, but also creating synthetic businesses, which are fake vendors or corporate customers. These AI tools are making falsifying income information, pay stubs, bank records and other paperwork even easier, and more convincing.
There’s no magical solution to generative AI fraud, and fraud prevention needs to be approached from every angle. Measures might include a fraud risk-management plan, shoring up vulnerabilities, increased training and awareness and extra identification hurdles in the face of suspicious behavior. You could also fight fire with fire by using AI tools to counter bad actors through automated predictive analytics, live-person detection, identity proofing and fraud investigation.
However, in the face of ever more frequent and sophisticated fraud attempts, this amounts to a costly arms race against fraudsters, who are known for being on the cutting edge of technology. It’s nearly impossible to defend against all threats and, sooner or later, there’s a good chance that scammers will get the best of you. For your peace of mind, you need to be ready to recover fraudulently obtained assets. That’s where battery-powered GPS tracking solutions like PassTime’s Encore come in.
Where fraud prevention fails, asset recovery takes over. A small, battery-powered GPS device like PassTime’s Encore is easy to install discreetly inside seats, glove compartments, consoles and trunks. You can find ever more places to install it by using a magnetized case. In the event of loss due to fraud, your wireless GPS tracking device helps you to track down the vehicle and recover it. These devices can even serve as a deterrent for fraudsters thinking about taking on dealerships.
Your best option for battery-powered GPS tracking will be a device with lithium-battery technology with multiple power modes to maximize battery life. You’ll also want dual location technologies that combine GPS and cellular location technology. These provide you with an accurate location, even in places where traditional GPS can’t reach, like parking garages or warehouses.
PassTime continues to offer industry-leading GPS-tracking technologies and solutions. Our Encore battery-powered GPS tracking devices feature cutting-edge technologies that enable you to manage assets and protect your bottom line. Here’s how:
Simple to activate, extremely lightweight (2 ounces) and installs in seconds, practically anywhere. Encore’s ultra-compact design (smaller than a deck of cards) and optional industrial-strength, magnetized clam-shell case lets you place it where unauthorized individuals would be hard-pressed to find it.
4G/5G-compatible dual-location technology with Beyond GPS™ helps you locate assets where traditional GPS-only devices fail, such as indoors and in urban areas.
Advanced lithium battery with 4+-year lifespan featuring low power consumption and four flexible power modes:
At PassTime, we’re a true partner dedicated to your business’ success and car-theft prevention. Our solutions help dealerships improve their cash flow, protect their inventories and combat vehicle-finance fraud. Protect your dealership’s assets today. Your customers’ peace of mind depends on you. Reach out today for a free quote.
