Impact of Identity Fraud on Auto Dealerships

This report details the findings of a survey conducted by eLEND Solutions regarding identity fraud in the auto dealership sector, particularly since the onset of the pandemic. The survey involved over 700 auto dealerships across the U.S. and reveals that identity fraud has surged, with 84% of respondents reporting direct experiences of fraud at their dealerships. The estimated losses due to identity fraud in 2022 alone exceed $619 million. The report outlines how the increased digitization of the car buying process has contributed significantly to this rise in fraud, with 95% of dealers attributing the increase to remote buying experiences. The document also discusses the measures dealerships are taking to combat fraud, noting that many rely on basic methods such as photocopying IDs, while only a minority employ advanced ID verification technologies. The findings suggest a critical need for dealerships to adopt more sophisticated fraud prevention strategies as the industry continues to digitize.