AI-generated deepfakes used in automotive identity fraud causing $7.9B losses
Fraudsters are combining stolen personal data from breaches with AI-generated deepfakes to impersonate customers in automotive fraud schemes. The automotive industry reportedly suffered $7.9 billion in identity fraud losses in 2023, prompting dealers to restrict out-of-state sales and driving adoption of identity verification tools.
What happened
Identity fraud in the automotive industry, particularly affecting dealerships, has grown due to a combination of data breaches providing personally identifiable information and the ability to create realistic deepfake images remotely.
Fraudsters combine stolen personal data from data breaches with AI-generated deepfakes and physical identity document fakes to impersonate legitimate customers in automotive transactions.
Reported impact
The automotive industry faced losses of $7.9 billion in 2023 due to identity fraud.
The increase in fraudulent activity is forcing many US dealers to consider halting out-of-state sales, a decision that could increase costs for consumers amid already high interest rates.
Index analysis
Digital identity verification company Vouched addresses the threat through a 'verification toolkit' combining visual identity verification, digital data analysis, social security validation, and real-time driver's licence validation.
Classification
Sources and evidence
Sources not yet published
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