Crime Prevention Month

Crime Prevention Month

Protecting Buy Here Pay Here Dealers from Theft and Fraud Around the Clock is Absolute Necessity

October is Crime Prevention Month, which is a perfect time to highlight the importance of safeguarding dealerships from the ongoing and pervasive problems of vehicle theft and fraud.

Auto theft has been and remains a significant problem in the country and, by all measures, has been exacerbated in recent years. Buy Here Pay Here (BHPH) dealerships not only face the problems of theft of their inventory off the lot, but also from thieves who may try to steal a vehicle during a test drive and criminals who use nefarious means to defraud a dealer.

Fraud comes in various forms, and dealers must be ready to combat all of them.

• False Information on Applications: Customers may provide false or misleading information on their credit applications. This can include inflating their income, misrepresenting their employment status, or providing incorrect contact details. Using GPS technology and the analytics they provide can assist dealers in verifying consumers’ information.
• Identity Theft: Customers may engage in identity theft, using stolen or fake identities to obtain vehicles from BHPH dealerships. They may use forged documents or stolen personal information to create a fraudulent identity, making it challenging for the dealership to verify the customer’s true identity.
• Payment Fraud: Customers may attempt payment fraud by issuing bad checks, using stolen or unauthorized credit/debit cards, or setting up fraudulent electronic fund transfers. This can lead to the dealership releasing a vehicle before discovering that the payment method is invalid, resulting in substantial financial losses for the dealership and scrambling to locate their collateral.
• Vehicle Theft and Non-Return: Some customers may intentionally steal vehicles or refuse to return them after defaulting on payments. They might hide the vehicle’s location or alter its identification numbers to make it harder for the dealership to recover the asset.

Nowadays, it’s important to employ strict verification and screening processes, conduct thorough background checks, and implement technology solutions to protect assets and prevent fraud. Maintaining good communication with customers and staying vigilant for suspicious behavior helps deter fraud before it becomes an expensive problem.

Advantage offers innovative solutions to protect auto lenders and their assets, making it an excellent choice for enhancing security, preventing theft, and aiding in stolen vehicle recovery.
Vehicle theft is pervasive in the automotive industry, affecting BHPH dealerships nationwide. According to the National Insurance Crime Bureau (NICB), the United States experienced 1,001,967 car thefts in 2022, valued at nearly $9 billion, a 7% increase over the prior year.

Advantage is an advanced data analytics tool designed to assist dealers with fraud and stolen vehicle recovery. Its modern technology provides pinpoint, location data and real-time tracking. According to the National Insurance Crime Bureau (NICB), 90% of stolen vehicles with GPS tracking devices are recovered.

Dealers in the U.S., especially in the Southwest, face the unique problem of having vehicles moved across the U.S.-Mexican border, making vehicle recovery incredibly challenging. Geo-fencing technology allows dealers to set up virtual boundaries, resulting in real-time notifications should a vehicle leave a preset area.

Advantage is an indispensable risk mitigation tool that provides real-time tracking, geo-fencing, immobilization, and predictive data analytics to safeguard high-risk loan-backed assets. Don’t wait until it’s too late – take steps to secure your dealership and assets immediately.