INDUSTRYINSIGHTS
Dealer Fraudsters May Be Driving Off With Your Inventory
Red Flags Your Team Should Spot
Your sales and finance teams are often the first line of defense.
Pay attention when a customer is unusually eager to speed through the process, becomes uncomfortable when asked for documentation, or starts changing details about how the trailer will be used. One concern isn’ t always a problem, but several warning signs together should never be ignored.
Dealership identity fraud is rising. Here’ s what dealers need to watch for.
Identity fraud is no longer just an automotive industry problem. According to Jim Lawyer, VP of Business Development at 700 Credit, it has become one of the fastest-growing risks facing trailer dealerships as criminals use stolen identities and sophisticated documentation to acquire inventory they never intend to pay for.
The scary part? Many of them look like legitimate customers.
One dealership learned that lesson the hard way. A customer arrived with a valid driver’ s license, strong credit, and a convincing story about a construction business. Nothing raised immediate concerns. The dealer approved the sale and the buyer left with a $ 50,000 cargo trailer.
Several weeks later, they learned the buyer wasn’ t who they claimed to be. The documents matched stolen information, the credit profile had been carefully built to appear legitimate, and the trailer was long gone.
This scenario plays out more often than dealers realize. According to Lawyer, it highlights what 700Credit calls the“ Identity Gap”: the difference between who a customer claims to be and who they actually are. Closing this gap starts with making identity verification a standard part of every deal, not just the ones that seem suspicious.
Verify Before You Invest Time
Many dealerships don’ t begin verifying identity until paperwork is underway. By then, your team may have already spent hours working the deal.
Instead, move verification to the beginning of the process. Most legitimate buyers won’ t think twice about verification, while fraudsters are more likely to walk away when they know additional checks are part of the process.
What Your ID Check Is Missing
Many trailer sales involve financing, business purchases, commercial use, or out-of-state transactions. Lawyer cautions dealers against relying solely on a driver’ s license. Today’ s fraudsters can obtain stolen information and counterfeit documents that look legitimate at first glance.
Identity details should be consistent across the entire transaction, including credit applications, contact information, business records, and financial documents. If information doesn’ t align, take a closer look before moving forward.
Why Every Deal Needs the Same Process
The most effective fraud prevention strategy is simple: treat every deal the same. Lawyer recommends defining and documenting a Driver’ s License verification process that should be followed for every transaction with a process also defined to audit that it is occurring regardless of how trustworthy the customer appears. Many fraud losses happen because someone made“ just this one exception” for a customer who seemed trustworthy.
Consistency in your processes removes the guesswork and reduces your risk.
Use Tools Built for the Job
Fraud prevention doesn’ t have to slow down the sales process. It simply requires dealers to verify who they’ re doing business with before releasing inventory.
As Lawyer notes, the goal isn’ t to create friction for customers, but to ensure dealers know exactly who they’ re doing business with before inventory leaves the lot.
Bottom Line
Before a trailer leaves your lot, make sure you know exactly who is taking possession of it. Ready to strengthen your fraud prevention process?
Stop by NATDA Benefit Partner 700Credit at Booth 2152 at the NATDA Trailer Show to explore dealer-focused solutions or visit 700Credit. com / NATDA to learn more.
78 The Haul www. natda. org