Frank on Fraud: ‘Car Gang’ Scams Digital Platforms to Bring Synthetic ID Fraud to the Masses 

A new “Car Gang” is reinventing how car buyers engage in synthetic identity fraud, according to a recent article by Frank on Fraud. 

Operating on Telegram and Facebook, the Car Gang offers buyers a convenient way to commit fraud. For a flat fee, they create a synthetic identity that can secure favorable financing. While customers are complicit in and ostensibly aware of the scam, they can take a hands-off approach by outsourcing to these experienced fraudsters. 

The group touts its experience using credit privacy numbers (CPNs), a telltale sign of synthetic identity fraud. A CPN is, in reality, just a stolen or fabricated social security number that fraudsters combine with other bits of personally identifiable information (PII) from multiple individuals. Together, these varied bits of PII comprise a new, synthetic identity, around which fraudsters can construct a favorable applicant profile. The goal is to deceive dealers into thinking the customer has a higher income, more robust employment history, and overall better financial health than they actually do. 

The process works as follows: 

1. The customer picks out a vehicle online and sends a link to the Car Gang, along with a $500 payment and a headshot for a driver’s license photo. 

2. The Car Gang uses a synthetic identity to apply for and purchase the car. 

3. The Car Gang furnishes a fabricated driver’s license and delivers the vehicle to the customer. 

The end customer receives a car with little more effort than ordering an Uber. Some plan to service the loan under fraudulently obtained financing terms, while others have no intention of making payments, instead opting to have the car eventually repossessed. 

Having received a fake ID, they would have trouble pleading ignorance to the scam when the car is eventually repossessed. Furthermore, they could implicate themselves in a larger fraud ring when fraudsters use those same synthetic identities to commit other crimes. 

To read the full article and stay up to date on Frank’s personal take on the fraud world, follow frankonfraud.com 

 Disclaimer: The views expressed in Frank on Fraud are the personal perspectives of Mr. McKenna and do not necessarily represent the views of Point Predictive.