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10 Tips for Spotting Fraud Faster

10 Tips for Spotting Fraud Faster

Published March 2018

This is a first in a two-part series discussing fraud in the automotive industry and its impact on GM dealerships. 

Fraud is estimated to cost the auto industry billions each year. Synthetic ID theft, odometer fraud and application fraud are a few of the many instances seen in dealerships. GM Financial is committed to helping dealerships identify suspicious activity. Here are a few ways you can protect both your business and your customers.

How to spot a fake

When looking at pay stubs and residency documents, ask yourself:

  • Are the fonts and font sizes consistent across the form?
  • Are the form’s field titles spelled correctly?
  • Does the paper have a watermark or security fibers to identify its authenticity?
  • Do signatures look authentic, handwritten or doctored in any way?
  • Do photos and/or logos look crisp?

It’s also a good practice to become familiar with the driver’s license in your state and surrounding states. As a rule of thumb, ask:

  • Does the customer resemble his or her photograph?
  • Does the expiration date match with the state policy? For instance, some require renewal every six years.
  • Are symbols, colors and acronyms accurate?
  • Has embossing either been removed or added to?
  • If there are holograms, are they intact?

Know Your Customers

With photo-editing programs and online resources, some fakes can be very hard to catch. That’s why getting to know your customer can sometimes be the best prevention method. “If something feels suspicious, dive a little further,” says Mike Henslee, Assistant Vice President Credit Review.

Does the information add up? Does the information from the credit bureau match what the customer gave you?

“Dealers need to remain vigilant. If the bureau indicates a customer has been at their address for 10 years, but it’s not the same one they present to the dealer, they should ask for clarification,” Henslee says.

Getting your contracts funded fast is our priority, but making sure information is accurate and consistent upfront may save you time having to collect more stipulations.

Protect your business

You are the first line of defense to prevent fraud. Make sure you and your employees are prepared. Be alert, ask questions and know what the trends are.

Read about the growing threat of synthetic identity fraud and what GM Financial does to combat the issue in a future edition of Dealer Insider.

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