Multi-Layered Fraud Prevention
Stop Synthetic Fraud Before It Starts
One platform that ensures smarter deals & safer sales for your business.
ID & Synthetic Identity Fraud Are Growing Threats to Dealerships & Lenders
Synthetic identity fraud is now the fastest-growing type of financial crime in the U.S., accounting for up to 85% of all identity fraud. Unlike traditional identity theft, synthetic identity fraud, also called synthetic id fraud, uses a blend of real and fake information like a valid Social Security number paired with a false name and date of birth to create a new “person” who can pass many standard credit checks.
This type of fraud is especially dangerous as it bypasses outdated fraud detection systems and results in high-ticket losses. For dealerships that means unrecoverable vehicles, insurance complications, and wasted hours of back-end admin. Once a vehicle is gone, so is your money and the chance of recovering either is slim.
Synthetic Fraud Defined
Synthetic fraud occurs when a fraudster creates a fake identity by combining real information (like a Social Security Number) with fake or fabricated details (such as a fake name, date of birth, or address). Over time, the fraudster builds a credit profile using this synthetic identity, eventually using it to apply for loans, credit cards, or purchases and then “busts out” by maxing out credit and disappearing.
Key traits:
- Built over time to appear legitimate.
- Often uses real SSNs (frequently of children or the deceased).
- Difficult to detect with traditional ID checks because the identity technically doesn’t exist.
Identity Fraud Defined
Identity fraud is when a criminal uses someone else’s real, stolen personal information like name, SSN, date of birth, or address to impersonate them and commit fraud. This could be opening a new credit line, taking out a car loan, or even accessing existing accounts.
Key traits:
- Entirely based on real identities.
- Victim often finds out via unexpected bills or credit report changes.
- Easier to trace once discovered, since it uses an existing identity.
Synthetic ID Fraud Defined
Synthetic ID fraud is a subtype of synthetic fraud where the fabricated identity is built primarily to defraud lenders, auto dealers, or credit issuers. It’s common in industries like auto sales because fraudsters can walk away with high-value goods (like cars) after passing the credit process using this fake-but-real-looking identity.
Informativ addresses this by forcing license validation, identity verification using cellphone data, multiple data point checks on credit reports, out-of-wallet questions, and hard stops on red flags, minimizing the risk of fake and synthetic identities being used in the showroom.
Difference: Synthetic Fraud vs. Identity Fraud
Aspect
Uses Real Info?
Synthetic Fraud
Partial (e.g., real SSN + fake name)
Identity Fraud
Yes (entire real identity)
Aspect
Victim
Synthetic Fraud
Harder to identify; could be no direct victim
Identity Fraud
A real person is victimized
Aspect
Detection
Synthetic Fraud
Harder to catch; often appears like a new legitimate borrower
Identity Fraud
More likely to be flagged by victim or credit monitoring
Aspect
Common Use Case
Synthetic Fraud
Building credit to exploit later (e.g., “bust out” fraud)
Identity Fraud
Immediate exploitation (e.g., instant purchase or account access)
Aspect
Industry Risk
Synthetic Fraud
High in auto, credit, and lending
Identity Fraud
Broad, but can trigger alerts more easily
Difference: Synthetic Fraud vs. Identity Fraud
Aspect
Synthetic Fraud
Identity Fraud
Uses Real Info?
Partial (e.g., real SSN + fake name)
Yes (entire real identity)
Victim
Harder to identify; could be no direct victim
A real person is victimized
Detection
Harder to catch; often appears like a new legitimate borrower
More likely to be flagged by victim or credit monitoring
Common Use Case
Building credit to exploit later (e.g., “bust out” fraud)
Immediate exploitation (e.g., instant purchase or account access)
Industry Risk
High in auto, credit, and lending
Broad, but can trigger alerts more easily
Informativ’s Multi-layered Prevention Stops Synthetic ID Fraud
With Informativ, your team catches synthetic id fraud in real time before the deal is written, before the car leaves the lot, and before the damage is done.
How It Works
When you run a hard or soft pull credit check, the information is scanned for 30+ risk factors according to FCRA compliance needs. Those factors include a short credit history or high tradeline velocity. If any red flags appear, your team gets a list of issues to investigate.
To prevent steps from being skipped, hard stops are configured to prevent credit access until every flag is cleared. Our “forced march” process means synthetic IDs can’t slip through.
Key Benefits for Your Business
Real-Time Detection
Catch ID and synthetic id fraud instantly before it drains your time, inventory, and money.
Configurable Hard Stops
Set strict red-flag rules that require resolution before your team can move forward.
Clear Fraud Indicators
Get a detailed view of risky consumer behaviors like rapid tradeline accumulation or mismatched ID data.
Flexible Pull Options
Works with both hard and soft pulls and is fully integrated with your workflows.
Compliance-Ready
Fully aligned with FTC, FCRA, OFAC, and Red Flags Rule requirements.
Zero-Loss Confidence
“We had many fraudulent deals before Informativ — zero after. We wasted a lot of time and money chasing the car, doing damage control, working with insurance, which is painful, on claims. Catching fraud early in the process, not after, really makes a difference in the efficiency of the store.”
— Jimmy Robinson, CFO at Pohanka Auto Group
Why Dealerships Trust Informativ
Fewer Dead Deals
Only pull full credit when the customer commits cutting admin work and protecting consumer data
Eliminate Friction
Let shoppers prequalify without sharing their social or full credit profile until they’re ready to buy.
More Qualified Leads
Place prequal QR codes across your dealership (desks, vehicles, websites). Customers scan, consent, and prequalify instantly with device and ID validation in the background.
100% License Validation
Every license scanned in-showroom or online is instantly checked. Fraud alerts are automatically sent if a mismatch is detected.
Never Skip a Step
Unlike standalone tools, Informativ forces validation on every deal even during busy hours when fraudsters are most likely to strike
Our Promise: No More Blind Spots
Informativ’s proactive compliance platform eliminates the guesswork from dealer fraud prevention and credit pull workflows. It’s the only end-to-end solution that puts you in complete control of showroom compliance, fraud detection, and credit optimization –all at a flat monthly rate.
You’ll replace fragmented tools with one unified platform that:
- Reduces compliance risk by 50-80%
- Cuts dead deal admin to nearly zero
- Eliminates customer friction
- Saves thousands in chargebacks, insurance claims, and lost cars
Ready to Stop ID & Synthetic Fraud?
Let us show you how to catch fraud before it costs you.
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