Fraud comes in many forms. Test drive fraud often comes in the form of someone posing as a serious buyer and then stealing a car. This is often done by going to a dealership, asking to test drive a car, presenting the dealership with an ID (most of the time fake, but sometimes real), then taking the car for a test drive and never returning. If you have ever been conned into a situation like this, you might have felt angry or embarrassed at the time, but know you’re not alone. We have linked to several instances of test drive fraud, and will continually update the links below, so give them a read and learn more about how these criminals are committing fraud.
Instances of Test Drive Fraud:
- Arrest made after scammer tries to buy 2 Maseratis with fake ID – April 18, 2023
- Woman leaves fake ID at dealership, steals car during test drive, owner says – February 24, 2023
- Pasco man used fraudulent ID in attempt to purchase 2 Mercedes, deputies say – January 11, 2023
- Colorado crime ring stole nearly $1 million worth of cars and property, indictment says – December 2, 2022
- Police: Woman tries to buy real car with fake ID – September 5, 2022
- Woman stole vehicle from CarMax in test drive : BPD – August 29, 2022
- SPD: Woman steals test drive vehicle, found with six knives – July 28, 2022
- Man charged after taking car from Green Bay dealership during test drive – April 12, 2022
- Man arrested over string of alleged test drive vehicle thefts – February 14, 2022
- Woman accused of using fake IDs to steal cars from dealerships during test drives – June 29, 2021
- Two men accused of stealing car after test drive – September 12, 2017
- Cars are being stolen during test drives, Calgary police warn
So as you can see, the stories are endless. Criminals are getting bolder and bolder, but that doesn’t necessarily mean smarter. Many times people will present IDs that look real to the naked eye, but upon inspection with an ID scanner and software combo, these IDs will flag as fake, and your company could be spared tens of thousands of dollars. Contact one of our industry experts to learn more about how your business can prevent test drive fraud.
What is test drive fraud?
In test drive fraud, criminals present automobile dealers with a fake ID in order to take a car for a test drive. Unfortunately, they never return, leaving the dealership to foot the bill for the stolen car. It’s a tactic that is becoming more common, and it’s enabled by identity fraud.
Common test drive fraud tactics
In the aforementioned crime, the perpetrator, wearing a pandemic mask, presented the auto dealers with a stolen ID. But there are other more sophisticated ways to commit identity fraud.
In true name fraud, which spiked from 7% in 2017 to 15% in 2018, bad actors use a stolen driver’s license and social security number to create a fake identity. In synthetic fraud, fraudsters create a fictitious identity with a combination of real and invented personal information. According to the federal reserve, 85-95% of synthetic fraud is not flagged by traditional identity verification models.
Losses due to these types of identity fraud are hard to recover, with stolen vehicles–sometimes from a test drive– often being dismantled and shipped overseas.
Why is test drive fraud and theft increasing?
The reasons for the fraud explosion are two-fold.
During the pandemic, auto dealerships moved their businesses online to accommodate social restrictions. Fraudsters became adept at using false and stolen identities. Masks also made traditional modes of identity verification challenging. And when customers could no longer conduct test drives at the car lot, auto dealers began to deliver cars to residences.
Unfortunately, bad actors drove away, never to return.
Other industries, such as financial services, have tightened their identity verification processes, making it increasingly difficult for fraudsters to game their systems, forcing bad actors to shift their targets. Many put the automotive industry in their sights.
How can dealerships prevent test drive fraud?
Dealerships need to be vigilant regarding fraudulent activities in the automotive industry so that they can create systems that deter criminals and train their employees on what red flags to look out for.
For example, If a customer is rushing through the car-buying process, slow down and ask questions, which will likely deter potential fraudsters. If a deal seems too good to be true, it probably is.
Additionally, adding a drivers license scanner for car dealerships can immediately show potential criminals that your dealership is serious about identity verification. IDScan.net offers ID scanning solutions for the automotive industry.
