#USA #Atlanta #Cox Automotive #Dealertrack #Point Predictive

Cox Automotive and Point Predictive Join Forces to Combat Rising Fraud Costs

In an innovative move to tackle the escalating issue of automotive fraud, Cox Automotive has entered a significant partnership with Point Predictive. This collaboration aims to introduce advanced artificial intelligence (AI) driven solutions for identity verification, which are essential for protecting dealers, lenders, and consumers from the increasingly sophisticated tactics used by fraudsters.

As the automotive industry grapples with the rising costs associated with fraud, estimated to potentially reach $10 billion in fraudulent transactions by 2026, Cox Automotive recognizes the urgent need for enhanced protection measures. Point Predictive’s BorrowerCheck tool will be at the forefront of this initiative, designed specifically to combat complex fraud methods including synthetic identities and deepfakes. By integrating this tool directly with Dealertrack, Cox Automotive's flagship platform, users will benefit from streamlined workflows and real-time document verification.

Derek Hansen, Senior Vice President at Cox Automotive, emphasized the necessity of moving beyond traditional fraud detection methods that often miss sophisticated schemes. He remarked, “Our goal with this partnership is to strengthen our compliance portfolio and provide our dealers with more robust, next-generation fraud detection and identity verification solutions.” This focus on next-generation technology is critical as dealers face increasing pressures to mitigate risks amidst heightened scrutiny.

BorrowerCheck employs machine learning to assess fraud risks by identifying synthetic IDs and scoring potential fraud activity while also enabling real-time document validation. This not only speeds up the financing process but also enhances the overall customer experience, a vital aspect in an age where digital transactions are ubiquitous.

Industry analyst Joey Yates noted the dramatic impact of these innovations, stating that Point Predictive's technologies can help lenders reduce early payment default losses significantly, by as much as 30-50%. Furthermore, with advanced analytics and a proprietary risk database housing billions of data points, the BorrowerCheck solution is capable of detecting over 90% of fraud attempts that conventional systems fail to recognize, while minimizing false positives by up to 70%.

“Integrating BorrowerCheck into Dealertrack’s compliance suite offers dealers a comprehensive solution for identity verification and fraud-risk prevention,” Yates continued. The tools provided through this partnership are adept at identifying various flags essential for compliance, including military lending alerts and employment verification.

The reception from industry stakeholders has been overwhelmingly positive, with dealers expressing confidence in this new integrated approach. David Basha, General Manager at Carriage Auto Group, highlighted the advantage of real-time fraud assessments, stating, “Our process is compliant while remaining efficient. Fraud risk is assessed in real time without slowing down our customers.” This level of operational integrity ensures both the safety of transactions and the adherence to complex regulatory requirements.

Amidst these developments, Cox Automotive is also releasing its 21st annual Dealertrack Compliance and Fraud Mitigation Guide. This resource will provide dealers with strategies to navigate the ever-changing landscape of regulatory changes and fraud prevention. It is available for free download, aiming to equip dealers with the knowledge necessary to protect their businesses more effectively.

With the automotive industry transforming rapidly, especially in response to technological advancements and increasing cybersecurity threats, this partnership between Cox Automotive and Point Predictive reflects a forward-thinking approach. It demonstrates a commitment not only to enhancing the security of transactions but also to fostering a safer environment for consumers and dealers alike.

For further insights into Cox Automotive’s ongoing efforts in fraud prevention, industry players are encouraged to visit their booth at NADA 2026, where these tools will be showcased live, emphasizing the potential of these cutting-edge technologies in reshaping automotive finance and compliance practices.