Experian’s Data Network Aims to Help US Automotive Lenders Fight Fraud

SCHAUMBURG, Ill., Oct. 27, 2023 — With rising vehicle prices and the automotive industry relying more heavily on digital retailing, lenders are experiencing an uptick in fraudulent loan applications. As a result, Experian introduced the Hunter Automotive Fraud Alliance, a collaborative data network designed to help automotive lenders in the United States share real-time fraud intelligence to minimize fraud risk, while maintaining a positive customer experience.

The Hunter Automotive Fraud Alliance builds on the company’s recent announcement of a fintech-focused version of Experian’s Hunter in the U.S., as well as the data network’s 30-year track record of success across the globe. Hunter is used by more than 360 organizations in 17 countries across a variety of vertical markets. In the automotive industry, Hunter is used by organizations in five countries, saving $684 million in potential fraud losses annually.

“As today’s fraudsters become increasingly sophisticated, it’s imperative for automotive lenders to work with trusted partners and leverage the latest technology to stay ahead of bad actors,” said John Gray, president of Experian Automotive in North America. “We have long been committed to helping businesses anticipate future fraud risks and verify consumers’ identities. The Hunter Automotive Fraud Alliance harnesses the power of advanced data and analytics and empowers automotive lenders to share fraud intelligence to identify suspicious activity, mitigate fraud losses and protect their customers.”

How It Works

Automotive lenders participating in the Hunter Automotive Fraud Alliance contribute historical data, including previously suspected and known fraud applications, to provide member organizations visibility into potential fraud risk. New loan applications are cross-referenced with multiple internal and external data sources, as well as the shared fraud database, to identify data anomalies and other signs of suspicious activity. Hunter calculates a fraud score to indicate the level of risk associated with each application, empowering lenders to make more informed lending decisions.

The network includes integrated workflow tools that facilitate lenders’ deeper examination of suspected fraud. Additionally, a unique capability is the machine learning automated portfolio review of previous transactions which are continuously rescored for fraud indicators.

On average, clients see a 35% uplift in fraud detection when participating in a Hunter network. It also greatly reduces “false positives,” which improves the customer experience by providing a more streamlined application process.

The Hunter Automotive Fraud Alliance will be available in the United States in early 2024. To learn more about Experian’s fraud prevention solutions, visit https://www.experian.com/business/solutions/fraud-management.

About Experian

Experian is the world’s leading global information services company. During life’s big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – Experian empowers consumers to manage their data with confidence. Experian helps individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organizations to prevent identity fraud and crime. Experian has 22,000 people operating across 32 countries and every day the Company is investing in new technologies, talented people, and innovation to help all our clients maximize every opportunity. With corporate headquarters in Dublin, Ireland, Experian is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 Index.

Source: Experian