Overview
Cox Automotive has integrated Point Predictive’s BorrowerCheck identity verification technology into its Dealertrack finance-and-insurance platform to help dealers, lenders, and car buyers curb rising auto fraud. Announced Jan. 27, the move embeds AI-driven checks for synthetic identities, document validation, and fraud risk scoring directly into Dealertrack’s compliance workflow.
Why it matters
Dealers are contending with sophisticated schemes such as deepfakes, doctored pay stubs, and synthetic IDs that can evade traditional “red flag” alerts. Cox positions this partnership as a step beyond legacy alerts, aiming to reduce false positives, strengthen compliance, and keep pace with lender scrutiny and audit requirements. Company leaders cited industry predictions of multibillion-dollar exposure to auto fraud by 2026 and emphasized the need for integrated, real-time controls that do not slow legitimate buyers.
How it works
BorrowerCheck is embedded within Dealertrack’s existing compliance suite so users can run fraud checks without leaving their workflow. The tool verifies identity, employment, and income information in real time, assesses risk earlier in the financing process, standardizes documentation for audits, and is designed to accelerate time-to-fund.
Key capabilities
- Real-time identity verification with Red Flags and OFAC screening, plus out-of-wallet knowledge-based questions
- Synthetic ID and fraud-risk indicators using biometric signals
- One-time passcode (OTP) verification via the customer’s phone
- Military Lending Act alerts to identify active-duty status
- A BorrowerCheck fraud summary report with recommended actions
- Employment and income verification (expected after the NADA show)
- Identity document validation and scanning as an add-on
Claims and performance metrics
Point Predictive positions its data and AI models to detect patterns of misrepresentation in loan files. According to the company’s website, lenders have seen reductions in early payment default losses by more than 30%–50%, funding-rate improvements of 40%–60%, detection of over 90% of fraud missed by traditional systems, and up to 70% fewer false positives. Cox attributed these performance figures to Point Predictive’s published materials.
Dealer experience and industry context
Early dealer feedback cited real-time risk assessment, automatic deal-data storage, and consistent documentation to support audits and lender requirements. The integration connects fraud prevention and compliance into a single process flow, aiming to reduce manual steps while creating a faster, more seamless experience for legitimate buyers.
Availability and roadmap
Cox did not disclose pricing or detailed availability. Employment and income verification will be added after the NADA show, and identity document validation is available as an add-on. Cox plans to showcase the tools at NADA 2026.
Additional resources
Cox is also releasing its 21st annual Dealertrack Compliance and Fraud Mitigation Guide, offered as a free resource with strategies to navigate regulatory changes and evolving fraud tactics.
Bottom line
The integration places BorrowerCheck at the center of Dealertrack’s compliance workflow, aiming to streamline fraud detection, strengthen compliance, and accelerate funding. Real-world impact will depend on how the tools fit existing dealership processes while minimizing friction for legitimate customers.
