Identity Fraud Costs Dealerships More than $700 Million Annually

84% of auto dealerships have experienced identity theft since COVID-19, costing the industry $700 mm annually. The remote nature of car retailing online, which accounts for 30% of sales, makes identity theft easier. Despite these risks, only 29% of dealerships employ proper identity document verification methods, with 64% relying on photocopies and only 33% using document authentication.

Sources: 

Wards Auto; “Auto Lending Fraud Trends Report”, Point Predictive, 2023; eLend Solutions; Consumers Embrace Online Car Buying, Progressive