Identity thieves often beeline to auto dealerships to take illegal possession of a car with someone else's credit.
To combat that, new web-based products are designed to help car dealers detect identity fraud and prevent vehicle thefts.
For instance, First Advantage CREDCO, a subsidiary of First Advantage Corp., has introduced BuyerID, identity-verification software for car dealers. BuyerID includes BuyerID Alert, BuyerID Advanced, and BuyerID Check. First Advantage says more will come.
Auto dealers have become prime targets of identity thieves, whom the FBI considers perpetrators of the fastest-growing crime.
“Identity theft is one of the single largest areas of concern facing dealers today,” says Christopher Morris, senior director of F&I Solutions at Reynolds and Reynolds Co. “When it occurs, they not only lose the vehicle, but their reputation takes a hit at both the consumer and bank levels.”
Adds Kevin Clements, a First Advantage senior vice president: “In the past, dealers generally needed to demonstrate due diligence in cases of identity fraud and the banks would usually take the loss.
“But as losses continue to multiply, more lenders are expecting dealers to stop identity thieves before they take possession of a car. Those that don't may find themselves on the hook for both the loan and the missing car.”
BuyerID Alert enables dealers to quickly confirm a customer's identity by verifying Social Security numbers, addresses and telephone numbers.
BuyerID Advanced accesses multiple sources to deliver applicant-verification data. Dealers can evaluate the relative risk level for each individual before a transaction. Risk indicators are based on validating key consumer information such as name, address, date of birth, Social Security number and driver's license.
BuyerID Check allows dealers to determine whether a customer has an active checking account with a positive balance.