Automated Fraud is Exploiting Prequal Systems—Here’s What You Need to Know

Public Service Announcement: Automated Fraud Attacks are Exploiting Prequal Web Apps 

The fraud threat landscape just took a dramatic—and dangerous—turn. FlexPath DXP is alerting the industry to a critical fraud pattern targeting online credit prequalification systems, and it’s already causing real damage.

In a recent live case, a dealership reported hundreds of prequal submissions flooding in within minutes. Each one used different names, phone numbers, and addresses. But they all had one thing in common—they triggered real credit bureau inquiries.

These weren’t simple human submissions. This was something much more sophisticated. The pattern points to AI or bot-driven identity validation attacks, where bad actors test fake but realistic identity data to see what sticks. If it qualifies, it can be monetized—through synthetic identity fraud, stolen data resale, or money laundering schemes.

⚠️ What’s at Stake?

This isn’t hypothetical. It’s already happening—and most credit prequal platforms and web apps have no idea it’s occurring on their own systems. Here's why this attack vector is especially alarming:

• Consumers may have their credit pulled without their consent

• Dealers and lenders risk funding synthetic or stolen ID loans

• Prequal platforms may unknowingly validate data for fraudsters

• Traditional tools like CAPTCHA and rate-limiting aren’t stopping it

Legacy prequal systems simply weren’t built for this level of targeted abuse.

✅ What You Can Do Right Now

If your organization offers online prequalification, you need to take immediate steps:

1. Review submission logs for high-frequency, unique entries

2. Audit your credit bureau activity for unusual spikes or customer complaints

3. Ensure identity is verified before any credit pull—a step most systems skip entirely

🔐 How VeriQual Protects Against This Threat

FlexPath DXP’s VeriQual™ solution was purpose-built for this moment. It’s a patent-pending, identity-first prequalification platform that verifies the consumer’s identity in real-time—before any credit bureau data is accessed.

Unlike legacy platforms, VeriQual blocks fraud at the front door. It verifies identity with a multi-factor, fraud-detection layer that makes it nearly impossible for AI bots or fake data to slip through undetected.

VeriQual isn’t just another prequal widget. It’s the first line of fraud defense in credit prequalification™

Let’s Work Together to Defend the Industry

This PSA is a wake-up call for every platform, lender, dealer, and vendor relying on digital credit tools. The industry can’t afford to ignore this.

If you suspect your system may be affected—or if you want to proactively protect your customers and reputation—reach out. We’re ready to help!

📩 Tarry@FlexPathDXP.com
📞 513.200.5757 (Anytime)