Auto Dealerships are Increasingly Impacted by Fraud

Fraud is a growing concern for auto dealerships, with one fraud incident on average per year. Despite this, only 21% of dealerships verify identification properly. Many rely on photocopying driver’s licenses (64%) rather than utilizing document authentication methods (33%). Additionally, the rise of online retailing exacerbates fraud risks. The financial impact is significant, with 59% of lenders requiring dealerships to repurchase loans in proven fraud cases.

Sources: “Auto Lending Fraud Trends Report”, Point Predictive, 2023; eLend Solutions

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