Stay Ahead of Fraud and Red Flags with Proven Fraud and Compliance Tools
Protect your dealership, safeguard your reputation, and minimize costly fines with Identity Verification and Red Flags Alerts
Understand the Risks of Fraud and Identity Theft
Fraud poses a significant risk to car dealers, affecting both compliance and sales. First-party fraud occurs when a customer commits to vehicle payments without intending to follow through, while third-party fraud, also known as identity theft, involves someone using another person’s information to purchase a vehicle without consent. Another type of identity theft, Synthetic Fraud, adds more complexity to the risk landscape. Dealerships are prime targets for quick third-party scams and first-party fraud through misrepresentation. With NCC’s Identity Verification and Red Flags Alerts, you can quickly identify potential threats and make informed decisions that protect your dealership’s growth from the moment you create a customer file.
$7.9 billion
Estimated fraud loss exposure in the automotive industry in 2023
$3,500 per citation
Penalty for non-compliance with Red Flags Ruling
10-20%
of dealers experienced an increase in fraud cases between 2020 and 2021.
Verify Identity to Avoid Fraud
Fraud is an increasing threat in automotive sales, but NCC’s Identity Verification tools help safeguard your dealership. By cross-referencing key Personally Identifiable Information (PII)- like Social Security numbers, phone numbers, and addresses- against trusted databases, NCC confirms that your customer matches their ID. This added layer of security prevents fraud, protects your bottom line, and strengthens customer trust.
Stay Compliant with Red Flag Rule
The Red Flags Rule requires dealerships to establish measures to detect, prevent, and address identity theft- an increasing risk in automotive sales. Non-compliance with the FTC’s Red Flags Rule can lead to hefty fines per violation, with higher penalties for repeat offenses. NCC’s Out-of-Wallet questions verify customer identity to keep your dealership compliant, protecting against fraud that could impact your reputation and bottom line.