Swindler Disappears with Corvette; Capital One Takes Action
In the ever-evolving world of car sales, fraud remains a significant challenge. However, Capital One's new product, ProtectID, is set to revolutionise the industry with its real-time fraud detection system.
ProtectID is designed to work seamlessly within a dealership's existing workflow, offering a non-disruptive solution to potential fraud. As applications are submitted by dealers to lenders or lending networks, ProtectID initiates a "soft" pull to evaluate them for potential risk in real-time.
The tool employs Capital One’s proprietary fraud models, AI, and machine learning to identify suspicious activity instantly. It flags potential risks such as synthetic identities, credit washing, and income misrepresentation, allowing dealerships to intervene early in the process without causing operational disruptions.
When an application is flagged as risky, ProtectID specifies which information triggered the alert and suggests next steps for the dealer. The applicant is then sent a secure verification link requiring them to confirm their identity through phone number validation, government ID upload, and a selfie capture. This verification step occurs before funding, reducing delays and ensuring the deal is secure from the start.
Dealers can initiate fraud verifications directly through Capital One’s Dealer Navigator platform, which integrates ProtectID, giving dealers control and flexibility to respond appropriately. If an application is flagged, the applicant receives a secure verification link to confirm identity, which includes phone-number validation, government ID upload, and selfie comparison to government ID photos in databases.
Fraud in the auto industry is a costly problem, with synthetic identities, credit washing, and income misrepresentation accounting for nearly 70% of total auto-fraud risk. According to Capital One's reports, fraud in the industry costs billions of dollars each year. The new anti-fraud system is designed to help deal with this challenge, providing dealerships with a powerful tool to combat fraud.
The tool is easy to use and doesn't require dealers to change their selling and financing process. Fortunes O'Neal, general manager of GM Central Kia of Plano (TX), considers ProtectID a game changer, as it enhances his team's judgment and instills confidence when selling cars. Dylan Bullock, general sales manager at Grapevine Dodge, appreciates that the tool allows for multiple levels of verification and that Capital One handles fraud detection.
Recent instances demonstrate the effectiveness of ProtectID. For example, it stopped a deal at Grapevine Dodge due to suspected identity theft, and the person whose identity was stolen was grateful for the action taken. Another instance involved a well-dressed man who bought a pricy Chevrolet Corvette from a dealership but did not pay for it, resulting in a loss of $90,000.
In summary, ProtectID prevents fraud by real-time evaluation of credit applications with advanced fraud detection algorithms, flagging suspicions early, sending flagged applicants a secure identity verification request before funding, operating seamlessly within existing dealer workflows, and empowering dealers with clear risk alerts and actionable next steps to assess and decide on flagged deals. This innovative tool is set to redefine auto sales by providing a secure, efficient, and reliable means of combating fraud.
- ProtectID, a real-time fraud detection system developed by Capital One, is poised to revolutionize the auto retail industry, offering a non-disruptive solution to potential fraud and aiding dealerships in combat against auto fraud.
2.With integration in Capital One’s Dealer Navigator platform, ProtectID allows dealerships in the aerospace, finance, technology, and cybersecurity sectors to initiate fraud verifications directly, providing them control and flexibility to respond to flagged applications appropriately.
- As fraud in the auto industry costs billions of dollars each year and accounts for nearly 70% of total auto-fraud risk, due to issues like synthetic identities, credit washing, and income misrepresentation, the introduction of ProtectID is a significant step toward addressing this challenge and creating a secure and efficient car sales environment.
