Identity theft and auto finance fraud are on the rise, threatening lenders, dealers and car companies alike.
Everyone needs to get smarter when it comes to battling the scourge. But experts say that because of the fragmented nature of auto finance, a group effort may be the best combat weapon.
Anti-fraud consortia have worked in other industries. But such efforts among U.S. auto lenders have met some resistance. One fear is that proprietary data and processes might be seen by competitors.
Such concerns are understandable. But lenders need to push forward, and fast. This is too big of a threat to wait for a risk-free solution.