General Motors wants to prevent fraud in the automotive industry with Blockchain

General Motors (GM) will collaborate with Spring Labs on its Spring Founding Industry Partners (SFIP) program. The program aims to improve data security using Blockchain technology.

GM will support Spring Labs through its financing division. The Texas-based lender General Motors Financial Company will provide the assistance. It was announced in press release.

The GM with the participation in SFIP is able to verify identity and fraud in financing the automotive industry.

Director of Strategy Mike Kanarios at GM ensure that this collaboration will build company’s efforts to innovate safety of theirs customers. That’s why they are committed and willing to invest, he added.

We are continually innovating and developing our fraud detection and prevention capabilities to better serve and protect our customers and distributors.

Mike Kanarios, Director of Strategy, GM Financial

Spring Labs CEO Adam Jiwan told Forbes that this merger could allow the development of cases “that would coincide with some of [GM Financial’s] top business priorities as a lender, or potentially [those of] GM as a parent company.

Major Problems

The fraudster combine real and false data to generate a new identity and then buys financed item, in this case vehicles.

Forbes reports that the frauds such as this one are real danger and means annual losses of millions of dollars for the GM Financial.

For Kanarios, Spring Labs Blockchain-based protocol might help with these cases. It would be a “better, faster and cheaper system” with respect to the current measures of company.

Blockchain and Automotive Industry

This is not the first time that Blockchain Technology has been used in the automotive sector.

In November 2017, IBM announced Car eWallet project which will incorporate a digital payment platform for autonomous and intelligent cars. They will cooperate with the vehicle manufacturer ZF Friedrichshafen and the Swiss-based investment bank UBS.

At the same time, the company Telefónica partnered with the Spanish company Seat (Sociedad Española de Automóviles de Turismo) to implement a Blockchain network in the manufacture of the brand’s vehicles.

GM entered the world of Blockchain Technology in May 2018. The MOBI initiative has also been added to the initiative of Open Blockchain for Mobility in order to find a system which will improve safety and industry-related economic aspects.

MOBI has also been joined by other major players in this area, such as Ford and BMW, whose research would focus on vehicle identification (confirmation of serial numbers before possible manipulation), Blockchain and payments for services.

Media: Criptonoticias.com