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Fraud against businesses that extend credit has never been more organized…or more expensive. Fake identities, fabricated documents, and synthetic credit profiles are no longer edge cases. They are AI-powered, organized and the fastest-growing category of financial loss for lenders across every vertical, including automobile dealers.
Informativ’s fraud detection software is built into the credit and verification workflow, not added on as an afterthought. It catches fraud before a deal funds – automatically.
Why Basic Fraud Detection Software Falls Short for Dealers
Most fraud detection platforms are built for banks, e-commerce, or enterprise lenders. They are designed around transaction monitoring and account takeover, not the specific fraud patterns that appear from the showroom to the deal desk and beyond.
Automotive, RV, powersports, and marine dealers face a distinct fraud environment:
- Identity fraud: Falsified IDs, such as drivers’ licenses, of a real person to obtain financing and steal vehicles.
- Synthetic identity fraud: Real and false information is combined to create a fake persona. For example, areal Social Security Number can be combined with false names, dates of birth, and addresses to create profiles that pass basic screening
- Document fraud: Falsified pay stubs, fabricated employment letters, counterfeit insurance cards, and fake residency records submitted to secure financing
- Internal fraud: Misuse and altering of customer information by employees to secure a more favorable sale for themselves or the customer.
Basic fraud tools don’t have the context to catch these patterns. Informativ does — because our multi-layered fraud detection is built specifically around how fraud appears in a dealership workflow.
What Informativ's Fraud Detection Software Does
Synthetic Identity Detection
Synthetic fraud is the hardest type to catch because the identity looks real. A fraudster combines a legitimate Social Security Number with a fabricated name, date of birth, or address. The result is a credit profile that passes basic identity checks.
Informativ flags synthetic identities automatically within the credit report workflow. Alerts surface SSN-to-name mismatches, thin credit histories inconsistent with the applicant’s stated background, and cross-database verification failures before a credit decision is made.
Document Fraud Detection via Verified Stips
Document fraud surged 244% in a single year. Fake pay stub generators, fabricated employment letters, and counterfeit insurance certificates are widely available and increasingly difficult to detect by visual inspection alone.
Verified Stips retrieves income, employment, insurance, and residency verification directly from the original issuing source — not from a document the applicant submits. There is nothing to forge. Verification happens in seconds – which means funding speeds up too Some lenders even offer rebates for dealers that use Verified Stips.
Red Flags Rule Compliance Alerts
The FTC’s Red Flags Rule requires businesses that extend credit to identify and respond to indicators of identity theft in covered accounts. Informativ surfaces Red Flags alerts automatically within the credit workflow — fraud flags, credit freezes, address discrepancies, and other triggers — so your team can act before the deal moves forward.
Out-of-Wallet Identity Verification
When an applicant raises initial fraud indicators, out-of-wallet questions provide a second layer of identity confirmation. These are personal knowledge questions — drawn from public record data — that a fraudster is unlikely to answer correctly, even with a stolen identity in hand. No additional documents required.
OFAC Screening
Every applicant is automatically checked against the Office of Foreign Assets Control (OFAC) sanctions list as part of the standard workflow. No manual lookup. No step to forget during a high-volume day.
The Numbers Behind the Problem
$9.2 billion
in auto lending fraud in 2025 according to Point Predictive
244%
surge in document fraud in a single year according to Entrust
1 in 120
auto loan applications may contain fraudulent information according to Bank Info Security
13,000+
fake IDs identified by Informativ in 18 months
$620M+
in auto lending fraud in 2025 according to Point Predictive
How Fraud Detection Fits into the Full Workflow
Informativ’s fraud detection is not a standalone product. It is layered into your credit, compliance, and verification workflow — so fraud screening happens automatically at every stage:
- ID verification built into the sales process so it can’t be skipped
- Identities verified via cellphone carrier data before an application is processed
- Synthetic ID and Red Flags alerts at the point of credit pull
- Out-of-wallet identity verification for flagged applicants
- Source-level document verification via Verified Stips
- OFAC screening as a standard step in every transaction
- Compliance logging and consent documentation for every transaction
- Proactive alerts when any fraud is detected
The goal is to reduce customer friction and move fraud detection out of manual review and into the workflow itself so your team is protected without being slowed.
Frequently Asked Questions:
Informativ’s platform offers multi-layered fraud protection as it detects identity fraud (altered drivers’ licenses or other forms of identification of a real person used to apply for credit), synthetic identity fraud (fabricated identities built on real and fake data), document fraud (falsified income, employment, insurance, and residency documents), internal misuse and Red Flags Rule indicators of identity theft.
A standard fraud check confirms basic data, not the legitimacy of it. Â It does not verify that the person applying is who they claim to be, or that the documents they submit are genuine. Informativ’s fraud detection adds identity verification, synthetic fraud alerts, out-of-wallet screening, and source-level document verification on top of the credit pull.
No. Fraud screening runs within the existing credit and verification workflow. Alerts surface in the same report your team reviews. Verified Stips expedites funding and in some cases includes rebates from lenders.
Yes. Red Flags alerts are built into the workflow, supporting your Red Flags compliance program under FTC requirements.
When fraud is detected an alert is immediately sent to managers at your dealership or even group-wide. The alert surfaces within the workflow, prompting your team to review the information before proceeding. Depending on the alert type, your next step may be out-of-wallet verification, document re-collection through Verified Stips, or declining the application. Informativ logs the alert and any actions taken for compliance documentation.