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Kurkin Forehand Brandes - COVID-19 Update

New technology helps reduce fraudulent car purchases

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Running a car dealership is hard work, and profit margins can make owners and managers feel like it’s nearly futile trying to make a profit. But the rewards of being a community’s supplier of motor vehicles are high if the business is well run over time. One of the concerns that dealers may have is fraud perpetrated by customers who were thought to be acting in good faith.

Identity theft, previously more of a concern for consumers, is becoming a larger issue for car dealerships. Some fraudsters have been harvesting the personally identifiable information of unaware people to create sophisticated false identification to purchase cars and other big-ticket items.

“Fraudulent purchasing and leasing agreements are not an isolated issue,” said the chief executive officer of a firm fighting car purchase fraud. “They are sabotaging the bottom line of dealerships nationwide. Just recently, dealerships in Florida were ripped off for more than $200,000 on the sales of luxury cars by fraudsters using stolen identification.”

New digital solutions help dealers make quicker and more accurate verifications of identifications when purchasers are ready to buy. Many of these work to make the process easier while still reassuring dealers and purchasers alike of the verification of their process.

Car dealers looking to protect their investments may retain the services of an attorney. A lawyer can help identify the technology and other assistants to running a clean and profitable business as well as represent a business’s interests in any sort of disputes or investigations. Legal representation is vital for many types of businesses, including the dealers that keep new cars on the road.