A Dealer's Field Guide to Spotting Every Threat Before It Costs You the Car
Fraud doesn't hit a dealership once. It hits five different ways, and each one calls for a different defense. The risk of fraud targeting dealerships is projected to reach $9.2 billion in 2026, deepfake fraud attempts have skyrocketed 700% year-over-year, and document fraud surged 244% in a single year. Dealers who treat fraud as one problem with one fix are risking vehicles, their time, money, and reputation.
244%
Surge in document fraud in a single year
700%
YoY surge in deepfake fraud attempts
$659M
In fraud losses prevented in one year by Informativ
Here are the five ways fraud hits dealers and the fix for shutting down each one.
1. Identity Fraud
The oldest trick in lending: a stolen identity used to apply for credit with a fake driver's license. A real person's information may be printed on the front but the barcode encoded on the back tells a different story.
The Fix
Informativ's ID fraud prevention solution scans a driver's license and validates 250+ barcode formats, cross-checking the data encoded in the barcode against what's printed on the front, not just a visual review. The result: Autobahn BMW scanned 1,481 licenses and stopped 4 fraudulent sales in its first six months on Informativ, with zero vehicles lost to fraud since, after losing two vehicles to a synthetic fraud ring the year before.
“It eases our minds to know that we can move forward with confidence and deliver a car without worrying about chasing someone who's outwitted the system.”
— Brandon Lee, New Car Sales Director, Autobahn BMW
2. Synthetic Fraud
The fastest-growing, hardest-to-catch fraud in lending. A real Social Security Number gets stitched to a fake name, birthdate, or address, producing a credit profile that looks like it belongs to a real person; and it's built specifically to slip past outdated, single-layer fraud checks.
The Fix
Informativ's automated synthetic fraud alerts flag SSN-to-name mismatches and thin credit histories inconsistent with the applicant's stated background, then adds a layer a stolen SSN can't fake: out-of-wallet questions (including a Google Maps version) that a fraudster can't quickly Google their way through. The result: Kia Moritz flagged 30+ fraudulent IDs in its first year on Informativ and hasn't had a true fraud case get through since.
“Not one time have we had a true fraud make it through our store after implementing Informativ. That's crucial to saving a lot of money and avoiding a big headache, making sure somebody else's information is not obtained by a scammer.”
— Doug Ashbrook, General Sales Manager, Moritz Kia
3. Document Fraud
Fake document generation services are widely available and can produce a convincing forgery in minutes for less than $20 including falsified pay stubs, bank statements, employment letters, insurance cards, and any other stip that supports an application.
The Fix
Verified Stips retrieves income, employment, insurance, and residency data directly from the source, eliminating forged documents and the manual back-and-forth that stalls funding. Many lenders offer rebates to dealers who use Verified Stips, turning a fraud control into a deal and funding accelerator that pays for itself.
4. Deepfake Fraud
The newest type of fraud: AI-generated personas, manipulated ID photos, and cloned voices built to slip past remote identity checks. As online and remote deals grow, so does the exposure. A convincing fake image can fool a human reviewer working from a mobile device or computer.
The Fix
Informativ's biometric Face ID requires a live, 3D "selfie" match, confirming the person on the other end of a remote transaction is real, not a well-lit photo, a video, or an AI-generated likeness. It closes a gap a traditional ID scan alone can't cover, so remote deals get the same protection as one closed on the showroom floor.
5. Internal Fraud
Misconduct or data misuse by dealership employees. It's the hardest fraud to catch, because the perpetrator understands the process and knows exactly where the gaps are. Training alone won't close them, since training is temporary and turnover is a fact of life at dealerships.
The Fix
Compliance logging, role-based access controls, and full audit trails, plus digital deal jackets that keep customer NPI off personal phones and email, close the internal gaps most vendors never even mention. That matters: 67% of salespeople still receive licenses and stips via personal text or email today, and every one of those is an FTC Safeguards Rule violation.
Bonus Fix
Leverage technology, not memory, to enforce fraud checks that speed up the sales process on every deal, every time. The process runs the same way on a slow Tuesday and a packed Saturday.
“We have been a client for 15 years. Informativ's platform has eliminated fraud, eliminated the paperwork from our showroom and created a consistent, compliant sales process. It's an absolute no brainer.”
— Mike Brosin, Crest Auto Group, a Berkshire Hathaway Company
One Pipeline. Five Defenses. Zero Blind Spots.
When these layers work together the result is a funding pipeline that is simultaneously faster and more secure. Not just faster funding. 0% fraud and 100% confidence in every deal that moves through your pipeline.