Experian Launches Data Network to Combat Rising Fraud in Auto Loans

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The Hunter Automotive Fraud Alliance allows auto loan lenders to contribute data that can be cross-referenced by other lenders.

Experian unveiled the Hunter Automotive Fraud Alliance, a collaborative data network to assist automotive lenders nationwide share real-time fraud intelligence, minimizing the risk of fraud while preserving a positive customer experience. 

The Hunter Automotive Fraud Alliance encourages participating lenders to contribute historical data, including previous instances of suspected and confirmed fraudulent applications. This data is then leveraged to provide member organizations with valuable insights into potential fraud risks.

When new loan applications are received, they are meticulously cross-referenced with a comprehensive database that includes both internal and external data sources, along with the shared fraud database, enabling the identification of data anomalies and other indicators of suspicious activity.
 
Hunter calculates a fraud score for each application, allowing lenders to make more informed lending decisions. This data-driven approach empowers lenders to stay ahead of fraudsters who are becoming increasingly sophisticated in their tactics.

Experian's Hunter system has already demonstrated its effectiveness in combating fraud. It is currently in use by more than 360 organizations in 17 countries, across various industries. In the automotive sector alone, Hunter has been adopted by organizations in five countries, collectively saving an impressive $684 million in potential fraud losses each year.

Participating clients in the Hunter network report a substantial 35% increase in fraud detection rates. The alliance also addresses the issue of "false positives." By reducing these false alarms, the alliance streamlines the application process, significantly improving the overall customer experience.

The Hunter Automotive Fraud Alliance will debut in the U.S. in early 2024.

"We have long been committed to helping businesses anticipate future fraud risks and verify consumers' identities, said John Gray, president of Experian Automotive in North America. "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."

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