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Axle and Experian Partner to Enhance Automotive Fraud Prevention

In a groundbreaking collaboration, Axle, a leader in insurance data APIs, has announced a strategic partnership with Experian®, a renowned global data and technology firm. This initiative aims to integrate real-time automotive insurance verification into Experian's Fraud Protect™ platform, creating a significant barrier against identity and vehicle fraud in the automotive sector.

The Need for Enhanced Fraud Prevention

As fraud in the automotive industry continues to escalate, dealerships and lenders are increasingly concerned about the risks associated with identity verification and insurance compliance. Research from Experian indicates that a staggering 70% of dealers and 61% of lenders perceive fraud as a growing threat. The introduction of this partnership addresses these pressing concerns by offering tools that not only authenticate customer identities but also confirm insurance coverage before a vehicle is purchased.

How It Works

By incorporating Axle’s advanced insurance verification system into Experian's robust Fraud Protect platform, dealers can achieve real-time insights into the validity of insurance policies. This includes checking the policy status, coverage limits, Vehicle Identification Number (VIN) match, and lienholder details—all within a streamlined mobile workflow that can be easily integrated into existing dealer systems. This enhancement empowers dealerships to proactively mitigate the risk of fraud before it results in financial loss from chargebacks or buybacks.

Robert Granados, President of Experian Automotive, highlighted, "The future belongs to dealers who leverage sophisticated data and analytics to stay ahead of evolving fraud threats. By integrating Axle's solutions into our platform, we equip dealers with vital resources to evaluate identity and vehicle credibility, minimizing potential fraud risks."

Benefits for Dealerships and Lenders

The integration of Axle's real-time insurance verification is a game changer for the automotive marketplace. Not only does it simplify compliance processes, but it transforms insurance data into a potent fraud prevention tool. As Armaan Sikand, Co-Founder and COO of Axle stated, "Our collaboration allows dealerships and lenders to access and utilize insurance data not just for compliance, but as a powerful fraud-prevention resource. The ability to instantly verify insurance enhances customer experience while significantly reducing risk."

This partnership is especially significant as it comes at a time when fraud techniques are evolving rapidly, utilizing digital channels and exploiting vulnerabilities in traditional verification systems. With legacy tools failing to counter increasingly sophisticated fraud schemes, the need for innovative, tech-driven solutions has never been more paramount.

About the Companies

Experian is a global data and technology company committed to empowering individuals and businesses through effective data solutions. They focus on redefining lending practices, addressing fraud, and delivering insights across industries such as automotive and financial services. Experian operates worldwide, employing over 25,000 people and providing vital services to various markets.

Axle, on the other hand, has established itself as the AI-driven universal API for insurance, catering to Fortune 500 lenders, fleet managers, and thousands of franchise dealers. The company's API suite is designed to automate insurance verification and facilitate real-time policy changes, all while providing a seamless and efficient user experience. Backed by influential investors, including Gradient, Google's early-stage AI fund, Axle is at the forefront of insurance technology innovation.

Conclusion

The partnership between Axle and Experian signifies a transformative step toward enhancing fraud prevention in the automotive sector. By streamlining verification processes and mitigating compliance risks, they are not only safeguarding dealerships and lenders but also improving the overall consumer experience in auto purchases. As the automotive industry continues to evolve, such strategic collaborations will be crucial for combating rising fraud threats effectively.