Auto fraud up 54% through ID theft, fake credit applications, Equifax Canada says

According to a recent report from Equifax Canada, there has been a significant 54% increase in automotive fraud, primarily driven by identity theft and fraudulent credit applications. This surge highlights significant vulnerabilities within the automotive financing sector, necessitating increased vigilance and enhanced security measures.

The escalation in fraudulent activities involves criminals using stolen personal information to apply for auto loans and other forms of credit. Such fraudulent activities not only impact lenders but also result in higher costs for consumers, alongside potential hits to their credit scores.

Equifax emphasizes the importance for consumers to regularly monitor their credit reports and financial statements to catch any suspicious activities early. Lenders are also advised to implement more robust verification processes to combat the rising tide of auto fraud effectively.

For more information and to stay updated on developments in this area, Canadians are encouraged to refer directly to Equifax Canada’s official communications and advisories.