In 2025 we analyzed more than 5,000,000 IDs scanned by our automotive customers. What we found was shocking. Use of fake IDs to commit fraud (test drive theft, loan fraud, stolen rental cars) has always been a concern for the industry, but presentment of fake IDs has surged in 2025.
Since December 2024, the percentage of fake IDs scanned at our automotive customers has risen 21%. ID fraud rates have been slowly rising since the pandemic – in 2024 Automotive Fraud Report as high as 4.15% of ID presented showed some red flags – but these rates began increasing even further in April of this year.
This type of fraud is seen regularly in regional news (and likely on the radar of your average IAATI member). A few recent examples.
- San Antonio, Texas fraud ring unravels after Cadillac theft (December 2025)
- Man in Illinois uses fake Tennessee ID to buy car, secure fraudulent loan (November 2025)
- Detroit-area car buyers use fake IDs to take out phony loans (October 2025)
- Utah man uses fake ID to steal Porsche (July 2025)
- Ontario man tries to buy $140K SUV using fake drivers license (April 2025)
However, it seldom makes national headlines, despite these fraud attempts often being related to larger organized crime groups, and/or bold individuals who make 7-10 attempts using the same fraudulent documents. The problem will continue to grow as many dealerships and agencies don’t want to create friction in the purchase process by introducing ID scanning or identity verification technology, or as they kick the verification process further down the funnel in the loan application stage.
Synthetic identity theft feels very real
Fraudsters create Frankenstein identities that blend stolen information (usually from an individual with good credit whose details were purchased on the darkweb) with their real face and biometric information, and often their real address.
Most common age of a fake ID: 34
Most common gender: Male
So you might have an ID with the name, drivers license number, and date-of-birth of upstanding citizen, Anita Johnson, while the picture, address, and height and weight match Suzy Fraudster. A credit check on Anita Johnson comes back clean, meanwhile the person standing in front of you is simply using her identity to perpetuate the scam.
This is why checking the document is still critical. Suzy Fraudster may have a credit card and insurance in Anita’s good name. She might be able to answer KBA questions. But she’s using a fake ID. The only way you will catch her is by authenticating the document itself.
AI makes automotive fraud easy
Why is ID fraud rising so starkly in the automotive industry? There are two primary factors. First, fraud trends run counter to economic trends. So during time periods of high interest rates, low employment, and rising prices, fraud spikes.
Second, is easy access to artificial intelligence. AI tools, mostly on darkweb sites such as ProKYC, make it easy to enter in the synthetic identity information, upload a photo, and generate an image of an ID. These images can then be used in remote verification processes and any digital transaction, either because the process allows for use of an uploaded photo, or using an injection or video attack. Although our ID verification software catches the vast majority of these fakes, they are extremely hard to identify with the naked eye and would easily fool any salesperson or office manager.
For those who need physical IDs, the process is only slightly more cumbersome. $20 in bitcoin and a few questions later and high quality fakes from Hong Kong can be shipped to your door in a week or two. Like the sophisticated images above, these IDs are extremely high quality and can only be detected using verification software.
Staying vigilant, even with in-state IDs and purchases
Risky out of state sales, or the ubiquitous image of the McLovin Hawaii ID can often give automotive businesses a skewed sense of where ID fraud risk comes from – but most often it’s coming from inside the state. Nearly 83% of fake IDs presented were “in state.” So familiarity with your state’s drivers license template should not reduce your team’s vigilance in verifying ID and identity.
All times throughout the day are not created equal either. The “hot zones” for fraudsters presenting a fraudulent document are over the lunch hour and in the evening after 6PM.
Keeping IAATI informed and secure
In summary, the sharp rise in fake ID presentment in automotive environments is not just a fraud trend, it is a clear operational and investigative challenge for dealerships, rental agencies, and law enforcement agencies. Organized theft rings have become more sophisticated and identity fraud increasingly serves as the front door to vehicle theft, relying on visual inspection or outdated verification methods is no longer sufficient.
The data shows that proactive identity verification, combined with cross-industry information sharing and investigator awareness, can meaningfully disrupt these schemes before a vehicle ever leaves the lot. Addressing fake ID use at the point of transaction is quickly becoming one of the most effective ways to prevent automotive theft before it happens.
We’re here to help! IDScan.net is exclusively focused on helping all types of businesses prevent theft and fraud using a fake ID.
Read the article in Vehicle Crimes Today
