10 highlights of 700Credit dealer survey about driver’s licenses – Auto Remarketing

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Ten intriguing findings surfaced through a survey orchestrated by 700Credit, which interviewed dealerships about their processes for obtaining copies of driver’s licenses from capture to deal jacket storage.

The provider of credit reports, compliance solutions, soft pull, and identity verification products said the results showed that significant gaps remain for dealers to follow privacy regulations and the new Safeguard Law.

With the development of new tools, 700Credit pointed out that dealers now have the capability to utilize new technology to validate both the driver’s license and the person’s identity. Experts said these additional steps can help to confirm the individual via address verification, Red Flag, OFAC, synthetic fraud checks and even compare against the state’s DMV database to verify active status.

To get a better sense of the current processes dealers are employing for obtaining driver’s licenses, 700Credit commissioned an online survey and presented it to more than 2,500 dealership executives during March.

Highlights of the survey included:

—Approximately 20% of respondents surveyed admitted they don’t know what process they have in place and that it is usually processed in the finance office, or that they do not know of a process in place at the dealership

—14% of dealer respondents said they do not have a process in place because they have always used the same format but couldn’t cite any specifics of the process

—Another 6% said they don’t have time to make a process

—5% said they don’t see the importance of having a process

—Of those who said there is a process in place, the majority (52%) are only making a photocopy of the license

—Roughly half said they only follow the process less than half the time

—19% said they collect a digital copy of the license

—Only 8.6% collect a digital copy and validate the license

—And only 0.6% said they collect a digital copy, validate the license, and compare it against DMV records to truly verify the license belongs to an individual

With so many dealers still not properly scanning driver’s licenses to verify shopper’s identifications, 700Credit managing director Ken Hill said it is not surprising to also see a third of respondents say they believe their dealership sees between five and 15 or more fraudulent attempts made on vehicles every month.

“We’re concerned with the amount of fraud and theft that exists in dealerships today and the lack of processes in place that could help minimize that fraud,” Hill said in a news release. “It’s alarming to view these results and see the staggering number of dealers who continue to neglect the critical practice of properly validating a consumer’s driver’s license and protecting that sensitive information inside their dealership(s).

“This carelessness not only exposes dealerships to heightened risks of fraud but also puts consumer’s sensitive information in jeopardy,” Hill continued. “We must collectively prioritize the implementation of robust safeguards to protect both businesses and consumers alike. The number of dealers still making simple photocopies of driver’s licenses is astonishing.

“At 700Credit, we remain committed to leading through education and offering proven solutions for industry-wide fraud prevention and compliance with the Safeguards Regulation,” Hill went on to say.

Hill elaborated about this topic and more during an episode of the Auto Remarketing Podcast recorded at NADA Show 2024 in Las Vegas. That conversation can be heard through the window below.

This post was originally published on this site

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