The ability to purchase a car on finance is popular amongst motorists who are unable to buy a vehicle outright and prefer instead to pay it off in regular installments. However, with fraudsters becoming more sophisticated in the way they obtain personal data, and the ease of applying for finance online, it means that application fraud has seen a dramatic increase.
How is motor finance fraud committed?
With motor finance fraud seeing an increase of 47% between 2015 and 2017, it seems that it is becoming easier for fraudsters to take out finance packages in someone else’s name. One of the main reasons this is becoming more common is due to the ways in which essential information is gathered.
Whilst hacking may be one of the ways in which personal data is obtained, those intent on signing up to card finance will try their luck at phishing. By pretending to be a reputable company such as a bank or utilities provider, they will attempt to con you out of your personal information, such as date of birth and even bank details, in a ruse to gain enough information to use your identity.
Once they have your information, they may then create fake documentation to allow finance to be taken out without question. Recently, a group of fraudsters were sentenced for doing just that, including forging fake utility bills and wage slips.
Those requiring motor trade insurance may also be affected by fraudsters who look to take out multiple policies in order to make a fraudulent claim. Always obtain your insurance from a reputable source, such as Quote me today, and ensure that you are covered for all eventualities.
How to combat finance fraud
If you are looking into purchasing a car on finance, it is important to be patient. One of the reasons fraudsters are able to take out finance is due to the demand for quick application confirmations. Dealers often see an influx of finance applications with continuous minor details changed each time an application has been denied, in order for a fraudster to find the right combination for a successful application.
The efforts that fraudsters go to are now prompting the urgent requirement of more thorough anti-fraud solutions, without the need for quick finance for genuine motorists being disrupted.