Dealer Loses $88K to ID Theft - Fraud Alert

[Jeff Kershner]

Here the just of it...

Sales Manager receives online lead/request to purchase a very expensive Jeep Grand Cherokee with all the options. Everything seems 100% legit. You gotta read the article to believe it. Transaction goes smooth - no red flags, no hiccups. UNTIlL...

http://www.fi-magazine.com/article/story/2018/02/fraud-alert-dealer-loses-88k-to-id-thief.aspx

How does one prevent this from happening?

 

[jscole86]

All our deals (in OH) require some forms to be notarized. Specifically, the power of attorney, our out-of-state form, and title application must be notarized.

I've heard from a few other dealers that use a company called Maverick for their out of state deals. I guess the concept of it is basically, paperwork gets sent to Maverick, and they meet with the customer. With them being a notary, they carry their own E&O insurance to cover this type of stuff too.

https://mavsign.com/services/automotive.html

 

[Rick Buffkin]

We had this to happen at one of our stores. I think it like a $70K Challenger. All the proper docs were signed and returned. Everything was done by the book. We delivered the car to Atlanta. It's never been seen since. Turns out, about 20 people in the same sub-division in FL was hit by identity theft all within a few months and car purchases was made.

 

[Jeff Kershner]

That's crazy. Thanks for the link @jscole86 - interesting service they provide.

 

[cenposChris]

Another option that could help as part of a layered security approach is to require a deposit via credit card. Require the buyer to self-pay (no phone payment) via a secure link with a checkout that supports 3-D Secure cardholder authentication* (Verified by Visa etc) to invoke cardholder authentication. This type of crime, stealing identity, ordering credit card, then buy the car may prevent fraudsters who don't want to go to that much trouble. Also, with this type of authentication, in the event of fraud liability, the issuer is liable.

Parts can also use to increase sales while mitigating fraud risk.
Christine Speedy
CenPOS

* Requires customer to self-checkout.