Initiatives underway to make public and trade aware of rising dishonesty online
The National Fraud Intelligence Bureau (NFIB) and fraud protection advice website Get Safe Online have highlighted the cost of online vehicle fraud while credit reference agency Equifax has relaunched its Identity Verifier product specifically to tackle an increase in identity fraud.
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Equifax claims the extent of its data sources and analysis will aid the protection of businesses against ID fraud, which accounted for more than half of all frauds reported to Cifas, the UK’s fraud prevention service, in the first half of 2013.
The company used similar figures in June to claim credit providers had taken their attention away from front-end identity verification and authentication. According to Cifas statistics published at the time, almost 60,000 cases of identity fraud were recorded in the first five months of 2013.
Equifax’s product will confirm both the existence of an ID presented by an applicant for finance and the ownership of the ID by that applicant by checking all details provided and highlighting where risk may lie. It will also allow for companies to customise the process to best address their sector.
Together the NFIB and Get Safe Online have estimated online vehicle fraud to be worth £1,652,411 a year, costing the average victim £1,414.
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By GlobalDataWith the two bodies attributing 89% of reported fraud cases to initial internet or phone contact, Get Safe Online has partnered with Gumtree.com, which now claims to be the UK’s biggest site for private car listings, to raise awareness of online vehicle fraud.
According to Google research for July 2013, the number of people looking online for used cars was up by 15% year-on-year, with 85% of used-car buyers and 87% of new-car buyers using the internet for research.
Tony Neate, chief executive of Get Safe Online, said: "The internet has transformed the way people are buying and selling vehicles.
"It’s a very positive thing but unfortunately it’s also made it easier for dishonest buyers and sellers to commit fraud."
Meanwhile, the NFIB announced eight arrests at the start of October as part of a nationwide campaign to target suspected identity fraudsters by the National Crime Agency.
Vehicle history and automotive data supplier HPI has warned growing numbers of buyers are falling victim to a fraud known as the ‘virtual car seller’ scam.
The company said used car buyers mistakenly think online payment systems, such as Google Wallet, will protect them if they are taken in by fraudsters.
However, reported HPI, money transferred to sellers via online payment systems aren’t protected, even if the car doesn’t exist, and buyers should never buy a vehicle online without seeing it and meeting the seller.
HPI says the virtual car scam has conned online buyers for years, tempted by adverts by UK sellers on motoring websites offering top-of-the-range cars at knock-down prices.
HPI operations director Phil Peace said: "Online payments systems offer many protections, but these are designed to
prevent fraudulent transactions.
"This is leading some consumers to believe if they use a system like Google Wallet, they will be protected if they fall victim to a scam. These systems offer security measures similar to those offered by banks, designed to prevent your money being taken without your knowledge or consent.
"The problem is, if a buyer transfers money over to someone willingly, there’s little can be done about it.
"Online transactions are so fast and easy now, that by the time people realise they have been duped, the sellers are long gone, leaving the buyers with a fictitious car for their money.
"Anyone who buys a vehicle with a hidden history stands to lose the vehicle and the money they paid for it.If a vehicle turns out to be stolen, it could be returned to the rightful owner and it’s a similar story for cars on outstanding finance, which actually belongs to the lender."
richard.brown@timetric.com
