Avoiding ID Fraud, Car Theft and Auto Rental Chargebacks
January 12, 2017
The advent of the Internet of Things has turned 20th-century cars into automated smart cars that harness sensors and the Internet for connectivity and convenience. In fact, connected cars can contain as much as 100 million lines of coded information. With such large amounts of data, the chances for a possible hack and access to personal data increase; moreover, the growth in car sharing services as a car rental option or a growing division of an existing company also presents cybersecurity issues. However, these problems are resolvable by taking the right steps to avoid ID fraud, car theft and auto rental chargebacks. Here are a few actions to consider.
1. Consider ID scanning & verification
Car rental and car sharing services are susceptible to fake IDs and auto theft, especially during a test drive or when loyalty programs can make it easy for multiple online reservations without the need to swipe a card. However, ID scanning can help reduce this issue. Solutions via mobile devices or scanners allow for quick data capture, ID authentication and even identity verification in real time.
According to the FBI, more than 700,000 cars are stolen on an annual basis in the United States, with one stolen every 45 seconds, as of 2015. Weak links in code and anti-theft systems explain why car thieves can easily steal vehicles and access personal data from consumers and even suppliers and manufacturers. However, biometric technology, such as facial recognition, offer viable solutions for mitigating this issue. For instance, facial recognition can be used in real-time to authenticate the driver and send a text message to the owner of the vehicle, should an unauthorized person enter the car.
While the sharing economy offers car sharing as a new revenue stream, dishonest customers can present security issues in the form of chargebacks. Chargeback fraud is often associated with increased customer complaints, and a history of chargebacks can increase this fraud. That’s why it is vital to recognize risks. Additionally, car sharing services can engage facial recognition to ensure that only drivers signed up for the program are using the authorized account and consider engaging further ID verification services while assessing vulnerabilities.
Technology is very often the driver of better services and better products for cars. However, connected cars can leave their drivers and passengers vulnerable to ID fraud and car theft if not secured properly. Business owners and managers of car sharing services or traditional car rental services can also leave their businesses exposed to chargeback fraud from their own customers. You can prevent these actions by using the right technology or consulting with an expert on ID verifications and security services.