With the rise of sophisticated scams and fraudulent activities, dealerships must take proactive measures to protect their business and customers. Below, we outline key strategies and best practices to mitigate the risks associated with fraud. Protecting your dealership from fraud requires vigilance, diligence and a proactive approach. By implementing robust security measures, conducting thorough background checks and staying informed about the latest fraud trends, you can safeguard your business and maintain the trust of your customers.
Be Wary of Suspicious Transactions
Exercise caution when dealing with transactions that seem too good to be true or involve unusual payment methods. Common red flags include customers who rush the process, refuse to provide proper documentation, provide fake documentation, refuse to disclose the source of their funds or insist on using unconventional payment methods, such as cryptocurrency or overseas wire transfers.
Staff Training
Ensure that your staff members are trained to recognise signs of fraudulent behaviour and know how to respond appropriately. Provide ongoing education and resources to keep them informed about the latest fraud schemes and prevention techniques.
Verify Documents and Titles
Thoroughly inspect all documents (driving licence, bank statements, etc.) and vehicle titles to ensure their authenticity. Look for discrepancies or irregularities that may indicate forgery or tampering. Verify VIN numbers and conduct vehicle history checks to confirm ownership and identify any potential issues.
Stay Informed About Fraud Trends
Stay up-to-date with the latest fraud trends and regulatory changes affecting the automotive industry and network with other dealerships to share insights and best practices for fraud prevention.
Vehicle Handover
Where possible, have the customer come to the dealership to collect the vehicle. In the cases where delivery of the vehicle is needed, ensure this is only done with the customer, at their registered address and a copy of their ID is provided.
Report Suspicious Activity
If you suspect fraudulent activity, report it to your local police force immediately and please notify us if it is regarding an application or agreement you have with Blue. Document any evidence and cooperate fully with law enforcement agencies and regulatory bodies to investigate the matter thoroughly.
