“Industry Expertise” is sponsored content produced by AFSA’s Business Partners’ to provide thought leadership and best practices for AFSA member companies. For more information about this sponsored content opportunity, contact Dan Bucherer.
In 2024, vehicle-finance fraud surged more than 16% to an estimated $9.2 billion—and experts warn that this upward trend will continue wreaking havoc on finance companies and dealerships.
The rise of AI-powered tools makes it easier for fraudsters to create synthetic identities and exploit financial systems. With rising inflation, tariff concerns, and bond market instability, fraud risks are growing—and tighter margins make financial losses hit even harder.
The rise of synthetic identity theft
The driving force behind this worrying trend? Synthetic identity fraud—the combination of real and fake information to create a new identity—accounting for a whopping 80–85% of all identity fraud.
Synthetic identity theft is harder to detect, because it slips past credit-monitoring tools that catch typical fraud. Consumers might not realize they’ve been part of a synthetic identity scheme for months. Scammers design the fraud to look like a regular loan default helping them to avoid detection.
The risks of losing assets for finance companies and dealerships
The average cost of vehicle-finance fraud is $21,000 per loan. For some dealers, it could take up to 10 sales to recuperate those losses. Many dealers and finance companies have no way to recover their assets. As Andy Pollock, an expert in vehicle-finance fraud, told FICO, “The vehicle can be driven to a port, put into a container and shipped to another country. Or driven across the border to Mexico. Or sold. Whichever way, the vehicle is nearly impossible to recover.”
How GPS management systems can help combat vehicle-finance fraud
Digital-lending solution platforms make it easier to verify identities and detect fraud. But a GPS management system is key to protecting your assets. A vehicle GPS system gives you real-time visibility into your assets’ locations—anytime, anywhere.
Recovering assets obtained through vehicle-finance fraud can be nearly impossible for companies stuck in the pre-technology era. But with a GPS tracking platform in place, you can recover assets in record time and help improve your cash flow.
How to leverage GPS management systems to protect your assets
Depending on your chosen GPS management system, you might be able to do a whole lot more than simply locate your asset. Here are a few features that help protect your vehicles:
- Real-time tracking: Know exactly where your asset is at all times.
- Tamper alerts: Get notified if someone tries to remove or disable the GPS device.
- Geofencing: Receive alerts if a vehicle exits a defined area.
- Starter interrupt: Remotely disable a vehicle to stop it in its tracks.
- Cell-assisted tracking: Locate vehicles even when GPS signals are weak or blocked.
- Discreet battery-powered options: Easily install in seconds and track without extra wiring.
Why PassTime should be your GPS provider of choice
For over 30 years, PassTime has helped more than 10,000 businesses protect over $10 billion in assets worldwide, with a 99.6% device reliability rate.
Our suite of vehicle tracking solutions gives your finance company or dealership the flexibility and freedom to manage your assets. Need to track assets quickly and affordably? Use Encore, our wire-free, battery-powered GPS device that fits in the palm of your hand. Want ultimate control of your GPS devices? Select GPS may be right for you. Want a customizable set of vehicle telematics to lower your vehicle financing risk? Go for Elite.
Make sure your assets are protected when it comes to vehicle-finance fraud. Connect with a PassTime representative today to get the support you need.
Industry Expertise | Vehicle-finance fraud is a $9 billion problem. Here’s how to combat it.
May 07, 2025
“Industry Expertise” is sponsored content produced by AFSA’s Business Partners’ to provide thought leadership and best practices for AFSA member companies. For more information about this sponsored content opportunity, contact Dan … Read the rest
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