By the time your team feels like somebody’s watching, they’ve already taken the money and run. Jim McGuire, Senior Director of Product Marketing at Experian Automotive, joined me at NADA a few weeks ago to talk about the rising threat of fraud in auto dealerships. Jim explains that nearly 9 in 10 dealers are concerned about fraud, and about 70% say the problem is growing compared with previous years. He outlines three primary fraud types impacting dealers: identity fraud, vehicle fraud, and income/employment fraud. A major focus is synthetic identity fraud, where fraudsters blend pieces of real personal data to build a fake identity and credit history before “busting out” with high‑value vehicle purchases (like EVs). Jim emphasizes that fraud prevention must be embedded across the entire sales process, from validating driver’s licenses and insurance before test drives to confirming trade‑in ownership, liens, and title status. The conversation also challenges the notion that fraud is solely a lender problem, as many dealers ultimately “hold the bag” when fraud losses aren’t fully covered by lenders or insurers. So what's the bottom line? Dealers need to take a more proactive, holistic approach to fraud mitigation, supported by data, tools, and insights. Although this is a bit of a departure from pure EV news content, fraud is definitely a growing issue in the retail space that deserves to be highlighted. The link to Jim's report is here!
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Check out Experian's EV Resource Page for all things electric vehicle data
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This episode is sponsored by Experian. Experian is a global data and technology company, powering opportunities for people and businesses around the world. Experian helps to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using their unique combination of data, analytics and software. Learn more here
https://www.experian.com/automotive/ev-resource-center?cmpid=EVS_for_Everyone
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Here's the link to Experian's Automotive Dealer Fraud Threat Report
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