Finance and insurance industry veteran John Pappanastos once said it’s hard enough to confirm the identity of someone sitting across from you in a car dealership F&I office, let alone verify it online.
That’s one reason many ID fraudsters increasingly go online to dupe dealerships (and lenders) out of vehicles.
During the COVID pandemic, many virus-conscious car buyers turned to the internet to buy a car. But droves of thieves joined that party, according to a new survey by eLEND Solutions, a technology company focused on automotive finance.
Its report, based on feedback from more than 700 auto retailers nationwide, indicates 84% of surveyed dealerships have directly experienced identity fraud at their dealership since the pandemic.
A third saw more than a 20% increase in identity fraud-related activities since the pandemic started. In the past year, 79% directly experienced identity fraud-related vehicle loss.
“The pandemic changed a lot of things in the auto industry – and that is particularly true when it comes to fraud which, as this report underscores, is causing more and more losses for dealers,” says eLend’s founder and CEO Pete MacInnis (below, left).
Citing various sources, he estimates franchised dealers alone took a $619 million hit.
“When there is less face-to-face, there is more of a propensity for scammers to pull this stuff,” he tells Wards.
It’s bad news for dealers and…
