Let’s be honest – the car-buying experience is a dreaded affair for most of us. It’s time-consuming, exhausting, and these days, it can be pretty expensive. But beyond the usual headaches, car dealerships are facing an increase in challenges that go beyond negotiating prices and interest rates. The rise of fraudulent applicants, synthetic fraud, and straw borrowers has become a harsh reality. Today, we dive into Gabi’s story, a recent college graduate whose dream job and aspirations for homeownership took an unexpected turn due to identity theft in the car-buying realm.
Gabi’s Journey Begins:
Meet Gabi, a recent college graduate who, with dreams of owning her first house, is hyper-focused on saving money, maintaining exceptional credit, and squeezing in a little travel fun when time allows. Little did she know that the seemingly routine task of updating her passport would set off a chain of events that would alter her life.
As she eagerly awaited her next adventure in Prague, someone intercepted her passport, swapped out her photo, and altered the application. Unbeknownst to Gabi, her identity was swiftly being stolen, and fake documents were being created with her credentials but someone else’s picture. Meanwhile, she continued planning her Prague trip, determined to enjoy her travels without going too deep into debt, mindful of her larger goal of homeownership in the next three years.
The Unseen Purchase:
In a regional car dealership, a fake Gabi strolled in, ready to make a significant purchase. After checking out several cars, she settled on a brand new SUV. Skipping the specifics to spare the dealership embarrassment, the fake Gabi walked away with a $82,000 SUV. She filled out the loan application, handed over her ID, and even presented a passport as a second form of identification. To sweeten the deal, she coughed up $5,000 as a down payment. Little did the dealership know, the fake Gabi had strolled into a bank with her new ID, withdrawing $5,000 without a hitch.
The Shocking Revelation:
Gabi’s awakening came when she discovered a $5,000 withdrawal from her checking account and received a car payment bill for a car she didn’t buy. The fake Gabi had purchased a car without her knowledge, leaving her with a hefty $700-plus car payment, no car and a long path to rectifying the situation.
The Fallout:
Unfortunately, Gabi found herself canceling her dream trip to Prague, embroiled in a battle to rectify the situation. Twelve months later, the real Gabi is still fighting, the vehicle is long gone, while the regional dealership has implemented better systems and tools to prevent such identity theft incidents.
A Call to Action:
This is a call to car dealerships nationwide to step up their game against fraud. It’s no longer just about inflating salaries or fudging work history. Contact us today to be proactive in the fight against fraud, safeguarding your business’s bottom line and reputation. Let’s ensure Gabi’s story serves as a cautionary tale and a catalyst for change in the industry.
Learn more about how Jumio helps fight fraudulent loan applications.
