Dealerships handle vast amounts of sensitive customer information daily, from financial data to personal identification details. Building an actionable identity verification process featuring robust identification tools makes sense.
According to the Bureau of Justice Statistics, in 2020, about 23.9 million people were victims of identity theft.
A Plan to Protect Your Dealership
The Red Flags Rule requires certain organizations, like dealerships, to create an identity theft prevention program to deter the crime and alleviate its damage. Building an action plan and a routine can help compliance management become second nature to everyone at your dealership who needs to manage such tasks.
A Red Flag is a pattern, practice, or specific activity that indicates the possible existence of identity theft. When you create your dealership’s identity theft prevention program, you’re laying down the steps your staff can take to identify, detect, and respond appropriately to Red Flags.
Start the Process with an ID Check
An identity verification tool provides an added layer of security against fraudulent activities. With the rise of identity theft, dealerships must verify customers' identities at the beginning of the credit application process.
By leveraging identity verification tools, dealerships can authenticate customer identities in real-time, mitigating the risk of fake transactions and protecting the dealership and its customers from potential financial losses and reputational damage.
RouteOne’s IDOne compares an applicant’s data with multiple databases and alerts dealers when there is a potential issue. Applicants are given a pass, fail, or caution status. Subscribers can adjust risk tolerance settings based on your dealership’s strategy.
Multiple databases and advanced analytics combine to provide straightforward decisions. You can even automatically generate quizzes if necessary. Plus, an OFAC check is part of each identity search.
With IDOne, you can choose your preferred integrated provider – 700Credit, NCC, or Transunion®. You can set your IDOne preference to auto-run every time you pull a credit bureau in RouteOne. The results populate in Deal Manager and can be overridden manually upon verifying the consumer’s identity.
Compliance Refresher for Busy Dealers
The Office of Foreign Assets Control, or an OFAC check, verifies a consumer’s name against the Specially Designated Nationals and Blocked Persons (SDN) list published by OFAC. This check helps ensure the applicant is not a prohibited person or entity. OFAC results are associated with the applicant and stored in the RouteOne system for future reference.
The Fair Credit Reporting Act (FCRA) required multiple agencies and commissions to establish Red Flag guidelines and regulations jointly. The Red Flags Rule is enforced by the Federal Trade Commission (FTC).
Synthetic Identity Fraud is a type of fraud in which a criminal might use real and fake information to create a new identity. Criminals can use synthetic identities to commit any number of fraudulent transactions. Synthetic Identity Fraud is rising, so creating a Red Flag detection program is crucial for your dealership’s compliance and security. RouteOne’s IDOne offers options to help combat synthetic fraud.
We can help you build an Identity Verification Program
Your DSA can subscribe to IDOne in the Admin tab of the RouteOne system > Premium Services > IDOne and choose your preferred product—700Credit, NCC, or Transunion®. Still need answers? Contact your RouteOne Business Development Manager or call the RouteOne Service Desk at 866.768.8301.