What To Do To Deter Vehicle Finance Fraud • Check the identification. Invest in an identification system such as a driver’s license ID system. If a transaction is remote, obtain a color copy of the ID and ask for a “selfie” with the ID for physical verification. Prior to delivery, require a taped video conference to review the contract. • Gather the proper documents. Look for abnormalities in documents. Check font size and different types between the name and the standard print. Look carefully at the background in the driver’s license photo. • Look beyond the documents. Verify cell numbers and email addresses. Have the salesperson send a text and email to the purchaser, which requires a response that is read back to the salesperson. REMEMBER: Do not send a text without obtaining consent from the receiver. It is preferable to obtain consent to contact in writing so there is no misunderstanding. (Telephone Consumer Protection Act). • Research the purchaser. Search the internet for social media accounts using their name and cell phone number. Check the home and employer’s business addresses on available maps. If the address is an apartment complex, obtain the complex’s listed number and verify. Ask yourself, does the income reflect the job title? NOTE: If the provided information does not coincide with the internet, it does not necessarily mean the information is fraudulent; however, it requires further investigation. Dealership Security Precautions • Use surveillance cameras and equipment that record and capture details. • Scan documents in color, especially IDs. • Keep documents with PII secure and not left unattended. REMEMBER: The FTC “Safeguards” Rule requires the dealership to ensure the security and confidentiality of customer information, including protecting the dealership’s systems against anticipated threats or hazards and unauthorized access or use of customer information. Limit and monitor who can access a customer’s personal information and encrypt information. • Vehicle keys/fobs should be logged in and out by each employee in order to track who was in the vehicle and when. Use a tamper-resistant key ring to avoid an easy swap of a traditional ring, as most key fobs are designed to release a hidden physical key inside while still attached to the ring. A criminal can easily replace the keyless fob with a “dummy” fob. Avoid putting both keys on the same key ring. If one fob is swapped, the other fob will still work and you’ll know the swap occurred. Require each salesperson to physically push the lock and unlock buttons after each viewing and before the customer leaves. This will ensure the key/fobs are operational and may identify any suspects before they leave the dealership. If you suspect a key/fob swap has occurred, immediately put the vehicle in a secured location and wipe the memory from the previous keys/fobs. The typical MO for the key/fob swap is to come back either late at night or early in the morning to retrieve the vehicle. • Secure the most valuable vehicles so that they cannot be easily driven away. • Create a document with a thumbprint section. Utilize a digital fingerprint capture device, ensuring the images are crisp and the ridges are prominent for identity theft precaution. • Record the finance process. How To Respond to Fraud If you know a person inside the dealership is presenting fraudulent information: 1. Call the responding police agency and tell them the suspect is still on-site and to elevate the call to an “in-progress” status. 2. Obtain photographs of the suspects, their vehicle and license plate. 3. Try to stall the person until the police arrive. If the fraud is discovered after the purchase: 1. Make a folder with clear copies of the purchase documents. 2. Make a copy of all correspondence. 3. Type a transaction summary, including dates, times and all employees involved. 4. Make a police report ASAP. 5. Follow up with the assigned investigator. Sergeant Schlosser has been in law enforcement for 27 years and supervises the Auto Theft Division, Vehicle Fraud Unit for the Houston PD, with a focus on criminal investigations involving suspects who use fraudulent identification to purchase vehicles at dealerships. He also serves as a board member for the Texas Department of Motor Vehicles. DEALERS’ CHOICE 28
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