Motor dealers report rising concerns over fraud
Motor dealers are reporting rising levels of fraud and attempted fraud, according to new Forecourt Foresight research from Close Brothers Motor Finance.
The research reveals that one in five (20%) motor dealers have fallen victim to fraud, and a further 31% have been targeted, but were able to prevent it. As a result, almost four in five (79%) dealers are concerned over fraud having an impact on their business, in contrast to only 4% who said they are not concerned at all.
With fraud on the rise, dealers are taking precautions to prevent falling victim. More than three quarters (76%) dealers conduct customer ID and credit checks, while almost two thirds (64%) have provided training for colleagues. Two in five (40%) now use fraud protection software, and only 7% do not plan to use this in the future.
John Cassidy, managing director of sales at Close Brothers, commented: “Unfortunately fraudulent activity is becoming more and more prevalent across the motor industry, and dealers will need to consider introducing more stringent checks and investing in tools to prevent fraud.
“At Close Brothers Motor Finance, we have already been taking a number of steps to protect our business and our dealer partners. As well as enhanced identity verification and biometric checks, we have also adopted services such as Experian’s fraud score and Resistance AI to check documents, which has already prevented nearly £800,000’s worth of potential fraud. Close Brothers Motor Finance has also been working with Cifas, the fraud prevention association, to utilise industry data more effectively.
“We are committed to supporting our dealer network, and – as well as appointing internal fraud champions – have delivered training as part of our dealer masterclasses. While we are proactively taking steps to enhance our support for dealers, it’s also important that colleagues across the network remain vigilant and alert to any fraudulent activity.”