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A fake ID is the entry point for almost every identity-based fraud attempt at the dealership. A fraudster who gets past initial identity verification is one step closer to funding a deal with a stolen or fabricated identity.
Traditional ID verification at dealerships means a staff member physically looks at a license and makes a judgment call or possibly scans the license to validate the information printed on it. That process fails consistently — not because your team isn’t paying attention, but because modern fake IDs are increasingly difficult to distinguish from real ones by visual inspection.
Informativ’s mobile ID verification authenticates a driver’s license in seconds using the data contained within the drivers license itself, not a database lookup alone. It is available wherever the deal happens: in the showroom, at the service drive, or during a fully remote transaction.
It’s also built into your process so the step can’t be skipped because your showroom is busy or someone is using the scanner. Informativ’s mobile app is where the driver’s license is scanned and checked for fraud, and where the digital deal jacket begins.
Where Mobile ID Verification Matters Most
In the Showroom
The most common scenario: An applicant presents a driver’s license before a test drive.. Instead of relying on visual inspection, your team scans the ID using Informativ’s mobile app.. The system authenticates the document, confirms the barcode and visual security features in real time.
If the ID is fake — wrong state format, altered date of birth, mismatched barcode data — it is flagged immediately and an alert is sent instantly to your managers.
Remote and Digital Deals
Remote deal volume has grown significantly. When a customer never sets foot in the dealership, in-person ID inspection is not possible. Informativ’s mobile verification workflow allows the applicant to submit their ID digitally and allows your team to authenticate it without being in the same room.
That same authentication process applies whether the ID is scanned in person or submitted digitally. The document either passes or it doesn’t.
How Informativ Authenticates an ID
Informativ’s mobile ID verification process works in three layers:
Document authentication:
The license barcode is scanned and decoded. Barcode data is cross-referenced against the visual data on the front of the document — name, date of birth, address, license number. Discrepancies between barcode data and printed data are a primary indicator of a tampered or counterfeit document.
Identity cross-reference:
The applicant’s information from the ID is verified. Name, date of birth, address, and Social Security Number are checked for consistency. Mismatches surface as alerts in the workflow.
Out-of-wallet verification:
When an ID passes document authentication but additional identity confirmation is needed, Informativ’s out-of-wallet questions provide a second layer. These are personal knowledge questions derived from public record data that a fraudster is unlikely to answer correctly, even with a stolen ID in hand.
ID Verification and Red Flags Compliance
A fake or altered ID is one of the Red Flags Rule‘s listed indicators of identity theft. The Rule requires dealers who extend credit to identify and respond to those indicators — and a fraudulent document presented to buy a car is one of the most direct examples of a red flag in practice.
Automating ID authentication is one of the most direct ways to close this specific gap in your Red Flags program. Every verification attempt is logged automatically, supporting the documentation requirements of a compliant Red Flags program.
When ID Verification Catches What a Credit Pull Misses
A clean credit profile does not mean a clean identity. Synthetic identities — constructed using a real and fabricated details — can produce credit profiles that pass basic screening. The social security number may belong to someone who doesn’t match the age of the person presenting it or someone who has never used credit. The profile looks normal until someone checks whether the person presenting the ID actually matches it.
Mobile ID verification combined with Informativ’s synthetic fraud detection in the credit workflow, closes the gap between what the credit file says and who is actually sitting across the desk.
Frequently Asked Questions:
Yes. Informativ’s ID verification process supports remote transactions. The applicant submits their ID digitally and the same authentication process applies — document authentication, identity cross-reference, and out-of-wallet verification if needed.
A flag appears in the workflow before the deal advances. Your team can then decide to request alternative forms of identification, escalate to out-of-wallet verification, or decline to proceed. All alerts and responses are logged for compliance documentation.
Yes. A fake, altered, or inconsistent ID is one of the Red Flags Rule’s listed indicators of identity theft. Documenting your ID verification process is part of a compliant Red Flags program.
DMV database lookups confirm whether a license number exists. They do not authenticate whether the physical document in your hand matches that record. Barcode scanning and visual security feature verification confirm the document itself is genuine — not just that a license with that number was issued somewhere.
No. ID verification and credit reporting are complementary steps. A credit pull confirms creditworthiness. ID verification confirms the person applying is who they claim to be. Both are necessary for a complete fraud prevention workflow.
Fraudsters have a typical “M.O”. They’re not interested in the cheapest vehicle on the lot, they won’t haggle on price, they’re in a hurry, and they likely come into the dealership during a busy time, or demand remote delivery to a generic location – like a coffee shop or office building – not related to their employer.