In 2025, buying a car is a much different experience than just a decade or two ago. Nowadays, you can look up a car on your phone, purchase it, and pick it up all in the span of a few days without being physically present. Amidst these changes is the state of consumer finances. In general, automobiles, and subsequently auto loans, have grown in popularity. Since 2014, auto loans and leases went from 31.3% of all consumer debt to 35.9%. In a dollar amount, this means that the outstanding balance for this growing share of debt has ballooned to $1.7 trillion and a 2.3% increase from just a year ago.
As a result, some customers attempt to circumvent credit history checks and financial inquiries by means of synthetic identities (Syn ID’s). These Syn ID’s allow customers to heavily increase the risk of loans, including a higher rate of fraud and delinquency rates. Fortunately, companies like Equifax have made it easier to do business with confidence. These companies offer Know Your Customer (KYC) technology which analyzes the financial status of your customers during the shopping process. Ultimately, to verify your clients and protect against unfaithful parties, KYC technology is the best step to being protected.
