700Credit Survey Shows How Dealers Are Susceptible to Fraud Through Flawed ID Processes

Less Than 1% Say They Collect a Digital Copy, Validate, And Compare Against DMV Records

FARMINGTON HILLS, Mich., May 7, 2024 /PRNewswire-PRWeb/ -- 700 Credit, LLC, the automotive industry's leading provider of credit reports, compliance solutions, soft pull, and identity verification products, today announced results of an industry-wide survey that takes the pulse of dealerships & their processes for obtaining copies of driver's license (from capture to deal jacket storage). The results revealed significant gaps remain for dealers to follow privacy regulations and the Safeguard Law.

Over more recent years, dealers now have the capability to utilize new technology to validate both the driver's license and the person's identity. This additional step helps to confirm the individual via address verification, red flag, OFAC, synthetic fraud checks and even compare against the state's DMV database to verify active status.

To get a better sense of the current processes dealers are employing for obtaining driver's licenses, 700Credit commissioned an online survey and presented it to more than 2,500 dealership executives during March. Highlights of the survey include:

• Approximately 20% of respondents surveyed admitted they don't know what process they have in place and that it is usually processed in the finance office, or that they do not know of a process in place at the dealership.
• 14% of dealer respondents said they do not have a process in place because they have always used the same format but couldn't cite any specifics of the process.
• Another 6% said they don't have time to make a process.
• 5% said they don't see the importance of having a process.
• Of those who said there is a process in place,
• the majority (52%) are only making a photocopy of the license.
• roughly half said they only follow the process less than half the time.
• 19% said they collect a digital copy of the license,
• Only 8.6% collect a digital copy and validate the license.
• A staggeringly low 0.6% said they collect a digital copy, validate the license, and compare it against DMV records to truly verify the license belongs to an individual.

"We're concerned with the amount of fraud & theft that exists in dealerships today and the lack of processes in place that could help minimize that fraud" said Ken Hill, Managing Director of 700Credit. "It's alarming to view these results and see the staggering number of dealers who continue to neglect the critical practice of properly validating a consumer's driver's license and protecting that sensitive information inside their dealership(s). This carelessness not only exposes dealerships to heightened risks of fraud but also puts consumer's sensitive information in jeopardy. We must collectively prioritize the implementation of robust safeguards to protect both businesses and consumers alike. The number of dealers still making simple photocopies of driver's licenses is astonishing. At 700Credit, we remain committed to leading through education and offering proven solutions for industry-wide fraud prevention and compliance with the safeguards regulation."

With so many dealers still not properly scanning driver's licenses to verify shopper's identifications, it is not surprising to also see a third of respondents say they believe their dealership sees between 5-15 or more fraudulent attempts made on vehicles every month.

About 700Credit
700Credit is the automotive industry's leading provider of credit reports, compliance solutions, soft pull products, identity theft, and driver's license authentication platforms. The company's product and service offerings include credit reports, prescreen and pre-qualification platforms, OFAC compliance, Red Flag solutions, 2022 Safeguards protection, Synthetic Fraud Detection, Identity Verification, score disclosure and adverse action notices, and mobile and in-store driver's license authentication solutions. For more information about 700Credit, visit  http://www.700credit.com.

Media Contact

Susan Burke, 700 Credit, LLC, (616) 240-9853, [email protected], https://www.700credit.com

SOURCE 700 Credit, LLC