The Rise in Fraud and How to Protect Your Dealership

Post by
Andrew Lemoine
The Rise in Fraud and How to Protect Your Dealership

With the rapid rise of fraud and identity theft due to advancements in digital technologies, protecting your dealership against fraud is paramount. According to data published in the recent report from Equifax Canada:

  • Identity fraud constituted a staggering 75.21% of fraudulent applications in Q4 2023, a significant increase from 64.7% in Q4 2022. 
  • The proportion of identity fraud in auto fraud applications has doubled since 2019, indicating a concerning escalation in fraudulent attempts within the automotive industry.

With these statistics, it's clear that dealerships must prioritize using identity verification technologies and establish protocols to mitigate the risk of falling victim to fraudulent activities. 

AVA ID offers a comprehensive solution that not only detects fraudulent applications but also helps dealerships maintain compliance with regulatory standards. AVA ID is a tool designed to enable automotive dealerships and lenders to identify a customer's identity and valid driver's license, all within seconds. By leveraging advanced technologies such as AI, Biometrics, and Optical Character Recognition (OCR), AVA ID ensures accuracy and reliability in verifying customer identities while complying with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.

Here's Four Reasons AVA ID is Indispensable for Your Dealership:

1. Enhanced Security: By accurately verifying customer identities and driver's licenses, AVA ID significantly reduces the risk of identity theft and fraudulent transactions. This ensures that only legitimate customers gain access to your dealership's services, thereby bolstering security and trust.

2. Streamlined Processes: AVA ID automates the identity verification process, allowing dealerships to expedite customer onboarding and transaction procedures. With quick and efficient verification, dealerships can enhance the overall customer experience and minimize delays.

3. Regulatory Compliance: With KYC and AML regulations becoming increasingly stringent, dealerships must ensure compliance to avoid legal repercussions and penalties. AVA ID simplifies compliance by digitally verifying customer identities and driver's licenses, facilitating adherence to regulatory requirements.

4. Fraud Prevention: By leveraging AI, Biometrics, and OCR technologies, AVA ID can accurately identify fake IDs and fraudulent applications, thereby preventing fraudulent activities before they occur. This proactive approach to fraud prevention protects your dealership's reputation and financial interests.

In conclusion, AVA ID is not just a tool; it's a shield that protects your dealership against the growing problem of identity fraud. By equipping themselves with AVA ID, dealerships can fortify their security measures, streamline processes, ensure regulatory compliance, and effectively combat fraud in all its forms. Don't wait until it's too late – protect your dealership with AVA ID today.

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