PSA2: How the 700Credit Data Breach Accelerates Prequalification Fraud Attacks
PSA2: How the 700Credit Data Breach Accelerates Prequalification Fraud Attacks
PUBLIC SERVICE ANNOUNCEMENT: Breached Data is Now Exploiting Credit Prequal Systems
How Breached Personal Data + Legacy Credit Prequal Fraud
Pose an Immediate Threat to Dealers, Lenders & Consumers
[1] The first shoe to drop was in July 2025, when our original Public Service Announcement (PSA)—later reported in Auto Finance News—outlined a growing threat: automated fraud attacks exploiting legacy credit prequalification web forms. These legacy workflows continue to act as fraud incubators across the industry today.
July 29, 2025 PSA: https://www.flexpathdxp.com/fraud-alert-center/entry/public-service-announcement-automated-fraud-attacks-are-exploiting-prequal-web-apps/
August 4, 2025 Auto Finance News:
FlexPath DXP disclosed that:
- Hundreds of prequalification submissions were submitted within minutes
- Each using real names, addresses, and phone numbers
- Every single fraudulent submission triggered a credit bureau inquiry
This real fraud attack—confirmed through multiple dealer’s CRM—is exactly how fraudsters validate stolen or synthetic identities using legacy “form-fill” prequalification apps that do not verify identity BEFORE the credit bureau is accessed.
[2] The second shoe dropped in December 2025, when the industry learned of the 700Credit data breach affecting the 700Dealer.com platform. According to 700Credit’s notifications and media reporting, unauthorized access between May and October 2025 led to millions of consumer records being copied.
Now both shoes have landed!
And they land on every dealer, lender, marketplace, and vendor in the country.
⚠️ How Credit Data Breaches Directly Supercharge Legacy Prequal Fraud
With breached personal consumer information (PII), criminals can now inject stolen identities into legacy prequalification web apps. Legacy prequal tools allow a bureau pull with nothing more than form-typed PII.
- No identity verification.
- No bot detection.
- No validation.
This allows fraudsters to determine credit eligibility which can be used for synthetic ID construction or bust-outs.
This is what PSA #1 showed: Multiple unique identities entered triggering bureau pulls.
This Is Now a Linked Threat Vector, Not Two Separate Incidents
🔗 Personal data breach = the ammunition:
Millions of names, phone numbers, and contact records circulating in the criminal ecosystem.
🔗 Legacy prequal systems = the weapon
They allow real-time credit testing using nothing but breached PII.
🔗 Consumers, Dealers, and Lenders = the victims of the convergence
From PSA #1:
- Consumers may have credit pulled without consent
- Dealers and lenders risk funding fraud or facing legal exposure
- Platforms unintentionally enable identity validation for criminals
- No CAPTCHA, rate-limiting, or duplicate suppression caught the attack
