Attentiveness Needed for Signs of Risk in Distant Transactions
In an era where remote deliveries have become the norm, Napleton Automotive is leading the charge in combating identity fraud. The dealership group regularly employs the services of vendor IDology to verify customer identities online, ensuring a secure transaction for both parties.
The importance of identity verification is not lost on Preston Stewart, National Variable Operations and Compliance Director for Napleton Automotive. He emphasises the significance of good, solid ID verification, citing the risk of paperwork being sent out randomly without verifying the recipient's identity.
Mavsign, another vendor used by Napleton Automotive, incorporates collecting a thumbprint from the buyer as part of its remote-delivery standard operating procedure. This measure is designed to deter scammers and increase security.
However, the threat of identity fraud persists. Dealerships sometimes proceed with a sale, despite Mavsign raising red flags. This decision increases the risk of identity fraud, a warning sign of which is when the phony customer cites a domestic emergency and changes the location of the document signing and delivery, usually to a different address than the home address on the contract.
To mitigate this risk, Napleton Automotive offers dealerships the option of dispatching a notary public for in-person paperwork delivery, customer signature collection, and potential fraud detection. This human touch, according to Lisa Spring, a manager for Maverick Document Signings, is crucial in deterring identity theft.
The Federal Trade Commission's Red Flags Rule, enacted in 2011, requires businesses involved in credit transactions, including car dealerships, to adopt written plans to detect and respond to instances of possible identity theft. The FTC provides templates for businesses to create their own Identity Theft Protection Plan, which can be tailored to incorporate tips and lessons learned.
Lisa Spring, in a recent webinar, presented anti-fraud tips and best practices for dealerships. She emphasised the importance of verifying buyers' identities both online and in-person during remote deliveries. Maverick Document Signings, with a network of notaries, is one of several vendors Napleton Automotive uses to deter fraud.
In conclusion, Napleton Automotive is committed to maintaining the integrity of its transactions. By employing various verification measures and educating its dealerships on best practices, it is setting a standard for the industry in combating identity fraud.
