A blockchain firm Spring Labs has announced that it is partnering with the finance arm of the largest US automobile company General Motors. Their partnership with General Motors Financial will help in reduction of identity theft. The joint initiative will explore the role of blockchain technology in data sharing.
Reports say implementation of the project will help General Motors save millions of US Dollars in fraud related cost. In fact, a recent study has shown that 95% of the car manufacturers are going to use blockchain technology in the coming 3 years.
What did the Announcement Say?
Through its Twitter handle, Spring Labs has said:
“Very excited to officially unveil our partnership with @gmfinancial, one of the largest global providers of auto financing with operations in North America, South America, and Asia.”
When interviewed, Mike Kanarios (Chief Strategy Officer of GM Financial) said that blockchain technology will help in fraud identification in a “better, faster, and cheaper” way.
Synthetic Identity Fraud and Blockchain Technology Adoption by General Motors
General Motors Financial, the finance arm of General Motors is confronting a newer kind of identity theft problem. It is called synthetic identity theft. In fact, this is the fastest growing identity theft type in the United States.
This fraud type blends different parts of people’s stolen data first. Then it creates a new identity. With the help of such identity fraud, an individual can apply for and get multiple loans on a car.
While recognizing this problem, Mike Kanarios has said:
“As the captive finance arm for General Motors and one of the world’s largest auto finance providers, we are continually innovating and evolving our fraud prevention and detection capabilities to better serve and protect our customers and dealers.”
Why are Fraudsters Targeting General Motors Primarily?
GM Financial has become a prime target of such fraudsters. This is mainly because the finance arm of General Motors has an extensive presence across the globe. Some of the global hotspots of GM Financial include North and South America as well as Asia. It issues
As it has been a prime target of the fraudsters, the company loses millions of dollars every year to fight identity theft. That’s why using blockchain technology will help the company save loads of money. This is mainly because a car bought by a fraudster makes it impossible to track.
Once a vehicle becomes untrackable, it become impossible to get the finance money back from its owner. That’s the reason why GM Financial has decided to adopt blockchain technology.
Can Adoption of Blockchain by GM Financial help in Mass Adoption?
Around 62% of the top executives of automobile industry believe that incorporation of blockchain technology will bring a
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