Increased Success in Preventing Car Loan Fraud

The US Treasury’s Financial Crimes Enforcement Network, or FinCEN, has recently published a report which shows that dealer and finance company staff have been making great gains in reporting and preventing auto loan fraud.  The study included an in-depth analysis of SARs (Suspicious Activity Reports) that cited identity theft.  The percentage of these reports that featured an attempt to employ identity theft in pursuit of car loan fraud dropped significantly in 2010.  Here’s the year-by-year stats:

  • 2004:  5%
  • 2006:  17.5%
  • 2007:  18%
  • 2008:  19%
  • 2009:  10.5%

FinCEN reports that this data reflects greater success in identifying fraudulent loans on the part of dealers, lenders, and buy here pay here car dealerships.

Identifying Identity Thieves

In 27% of cases, FinCen found that the perpetrator of the identity theft was a…

  • Family Member
  • Friend
  • Acquaintance
  • Employee in Victim’s Home

For the full report, please visit