2026 Pub. 7 Issue 3

WVADA NEWS 17 ∙ Hesitation or inconsistencies when employment, education or identity information is verified. ∙ Credentials or experience that seem unusually impressive but cannot be independently confirmed. These warning signs are not proof of fraud. They are reasons to slow down and verify information rather than making assumptions based on how polished an application appears. That distinction is important. AI can make a legitimate candidate’s resume look more professional, just as it can make fraudulent information look convincing. PUT VERIFICATION INTO THE HIRING PROCESS The best defense is not trying to become an expert at spotting AI usage. It is building verification into the dealership’s normal hiring process. Ask candidates specific questions about their experience and encourage them to describe situations they personally encountered. For example, rather than asking a service technician a broad question about diagnostic experience, ask about a specific repair they completed, how they approached the diagnosis and what they learned from the experience. Verify employment history, certifications, licenses and other qualifications that are important to the position. For technicians, sales professionals, service advisors, parts employees and other dealership positions, make sure the qualifications being relied upon are legitimate and relevant to the job. Identity verification should also be part of the process. Before hiring, dealerships should use appropriate methods to verify a candidate’s identity and follow consistent procedures for all applicants. Background checks and other verification processes should be conducted in accordance with applicable laws and dealership policies. PROTECT THE DEALERSHIP’S SYSTEMS Hiring fraud can be a cybersecurity concern, not just an HR concern. A fraudulent employee may be seeking more than a paycheck. Access to dealership systems can provide opportunities to obtain customer information, financial data, employee information or other sensitive business information. Strong account-security practices can help limit that risk. Two-factor or multifactor authentication can provide an additional layer of protection for applicant accounts, employee accounts and dealership systems. Access should also be limited according to an employee’s role. New employees should receive only the system and information access necessary to perform their jobs, with additional access granted when appropriate. MAKE THE PROCESS CONSISTENT BambooHR recommends five steps for reducing AI-related hiring fraud: 1) audit the hiring process, 2) train hiring teams, 3) establish fraud-prevention checkpoints, 4) maintain consistency across departments and 5) keep the process human-centered. This approach especially makes sense for dealerships, where hiring may involve multiple departments and managers. Sales, service, parts and administrative departments may have different hiring needs, but the basic verification process should be consistent. A candidate should not be able to move through one department’s hiring process with significantly fewer identity or credential checks than another. Training is also important. Hiring managers need to understand that a polished resume, professional video interview or impressive online profile does not necessarily establish that a candidate is who they claim to be. DON’T LET AI MAKE THE HIRING DECISION AI can be a useful tool for recruiting and administrative tasks, but dealerships should be careful about allowing automated systems to make hiring decisions without appropriate human oversight. The EEOC has warned that AI and other algorithmic tools used in employment decisions can create discrimination risks, including potentially screening out qualified applicants with disabilities. Employers remain responsible for complying with federal employment discrimination laws even when technology is involved in the hiring process. That means dealerships should understand how an AI-powered hiring tool is being used, what information it evaluates and how candidates are being screened. Automated tools should support the hiring process, not replace sound human judgment. KEEP THE HUMAN ELEMENT AI is becoming a permanent part of the workplace, and dealerships can benefit from using it appropriately. The goal is not to eliminate AI from the hiring process. It is to understand where it can help and where human judgment and verification remain essential. A candidate may use AI to improve a resume. That alone should not be a red flag. What matters is whether the information is accurate and whether the candidate can demonstrate the skills and experience described. Ultimately, the best protection is a thoughtful hiring process that combines technology with verification, conversation and human judgment. For automotive dealerships, hiring the right person is about more than filling an open position. It is about protecting customers, employees, dealership assets and the business itself. As AI makes hiring fraud more sophisticated, taking the time to verify who you are hiring is an investment worth making.

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