The motor industry faces pressures: to protect customers, dealerships and lenders from fraud. Dave Rossi, Managing Director at the membership group National Hunter, argues that collaboration, shared intelligence and enhanced due diligence can help the sector stay ahead of emerging threats.
Motor finance remains one of the most targeted areas for application fraud, with criminals exploiting high transaction values, rapid decisioning and trusted dealer relationships. From misrepresentation and identity misuse to organised abuse of dealership networks, the scale of attempted fraud continues to rise. In 2025 alone, National Hunter prevented £457m in asset and motor finance fraud, and this number is likely to increase in 2026.
Post-covid, the motor trade has become particularly vulnerable to ghost fraud — where vehicles are financed or sold despite never existing. The shift towards remote purchasing has made it easier for criminals to present vehicles that are not real, leaving individuals out of pocket and lenders exposed. Ghost fraud is also closely linked to money laundering, with approved finance agreements for non-existent vehicles creating significant challenges for banks and finance providers.
Organised crime groups are also becoming more sophisticated, using cloned contact details and other techniques to bypass verification checks. And, without a physical asset to recover, losses can be difficult to recoup.
Exploiting Trust
The rising cost of fraud affects the entire industry, and many organisations are already working hard to strengthen early detection and improve due diligence. Some frauds are, of course, extremely difficult to spot, particularly those that exploit long-standing relationships or reputable dealership networks. There are occasions, however, where patterns of behaviour or repeated activity can help organisations identify potential risk earlier.
In cases such as ghost fraud, criminals may repeatedly target respected dealerships or introduce new management to take advantage of existing trust with customers, banks and finance providers. These incidents can appear isolated, but in reality may form part of a wider pattern that only becomes visible when intelligence is shared.
Rather than placing expectations on regulators or industry bodies, there is a strong opportunity for industry wide collaboration.Working alongside organisations such as the FLA to help strengthen due diligence, improve visibility of emerging threats and enhance the tools available to members can add weight to the fight against fraud.
Collaborative Model
Sharing information and spotting behavioural patterns is a vital step in combatting increasingly sophisticated fraud. By working with anti-fraud detection services and pooling intelligence, the industry can more easily identify suspicious activity and respond quickly.
A single incident at a dealership may appear unfortunate or isolated. However, with organised crime groups actively testing processes and probing for weaknesses, early reporting and shared insight can make a significant difference. Proven and widely used alert services already help members link activity across organisations, enabling faster identification of repeat behaviour and supporting more informed decision-making.
By encouraging open communication and streamlined intelligence reporting, the industry can strengthen its collective defences and increase the likelihood of successful intervention and prosecution.
Conclusion
Motor fraud has escalated in scale and impact, with some cases exceeding £1 million in losses. At a time when the industry is navigating the transition to Electric Vehicles, new market entrants and changing consumer behaviour, fraud presents an additional and unnecessary strain. Beyond financial loss, it risks damaging lender confidence and customer trust.
Fraud can be combatted by enhancing due diligence, improving education, particularly around the importance of seeing a vehicle before funds are exchanged, and strengthening the flow of intelligence across organisations. Collaboration and data sharing are transformative.
Photo by Mark Rowe: street art, Glasgow city centre.
