An industrywide survey released by 700 Credit, revealed significant gaps remain for dealers to follow privacy regulations and the Safeguard Law.
The survey from the automotive industry provider of credit reports, compliance tools, soft pull and identity verification products takes the pulse of dealerships & their processes for obtaining copies of driver’s license (from capture to deal jacket storage).
Over more recent years, dealers now have the capability to utilize new technology to validate both the driver’s license and the person’s identity. This additional step helps 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, 700 Credit commissioned an online survey and presented it to more than 2,500 dealership executives during March.
Highlights of the survey include:
“We’re concerned with the amount of fraud & theft that exists in dealerships today and the lack of processes in place that could help minimize that fraud” said Ken Hill, managing director of 700 Credit. “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.”