Vehicle theft is a growing concern for many auto dealers across the nation. And thieves are getting smarter. Instead of physically stealing, many have resorted to complex identity fraud, attempting to purchase vehicles or receive auto loans under false pretenses with fake identities.

Once the vehicle sale is approved, the thieves vanish with the vehicle and no intention of paying. We connected with Sergeant Darren Schlosser to find out how a case unfolded in Houston and learn what you can do to protect your inventory.

 

How fraudulent ID vehicle theft occurs:

On Valentine’s Day, Houston authorities arrested a suspect for attempting to use a fraudulent ID to purchase a $33,000 vehicle. The confiscated Texas driver’s license was a high quality fake that many dealers would have believed legitimate. Furthermore, the thief admitted to being part of an organized crime ring that had attempted purchases at other dealerships. An ID scanner saved the day, preventing the dealership from handing over the keys to a bad faith buyer.

The takeaway:

Criminal organizations are willing to pay for quality fake IDs that look real to the naked eye. An ID scanner can verify legitimacy and help prevent you from getting scammed.

Why it matters:

Dealerships can help protect themselves against false pretense theft by thoroughly vetting potential customers and verifying their identities. An ID scanner can help ensure that the license used to purchase a vehicle belongs to a legitimate buyer.

“Please consider obtaining an ID scanning device for your business. The most basic first step in preventing fraudulent transactions is to make sure that the person purchasing the vehicle is legitimate. So basic, but so very important!”

– Sergeant Darren Schlosser, Houston Police Department

A great defense strategy:

An ID scanning device is a relatively low cost to your operation, and it will pay for itself for years if it prevents just one fraudulently purchased vehicle. Sergeant Schlosser suggests that you do your research prior to purchasing a device to ensure it works as advertised. He has seen devices that physically pull the ID into the machine and analyze its security features work well.

An ally by your side.

We’re always here to provide tips to help you shore up your security and stay ahead of constantly evolving theft schemes. Reach out to an Ally Dealership Insurance representative for more information.

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