Protect Your Dealership Against Identity Theft

January 26, 2022

According to the FTC, an estimated 9 million Americans have their identities stolen yearly. Victims can experience the trauma of damaged credit and emptied accounts, and the costs to a business can be significant. With a bit of effort, you can devise a diligent plan to help protect your dealership.


Make a Plan to Detect Red Flags

In a recent RouteOne compliance webinar, our team members discussed the FTC’s Red Flags Rule. This directive requires certain organizations to create an identity theft prevention program to detect, prevent, and mitigate the crime. Creating an action plan and building a routine can help compliance 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 must take to identify, detect, and respond appropriately to Red Flags. 


Check IDs at the Door

Of course, a dealership isn’t like a nightclub with a bouncer at the door, but you do need to “check IDs” at the beginning of the purchase process. Instead of a guard upfront, you could consider an identity verification tool.  

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 settings for risk tolerances based on their dealership’s strategy. Scans of multiple databases and advanced analytics combine to provide straightforward information. You can even automatically generate out-of-wallet quizzes if necessary. An additional benefit is that an OFAC check is included with each IDOne ID verification check. 

With IDOne, you can choose the integrated provider you prefer – 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, if needed, upon verifying the consumer’s identity.


Compliance Refresher for Busy Dealers

An OFAC check verifies a consumer’s name against the Specially Designated Nationals and Blocked Persons (SDN) list published by the Office of Foreign Assets Control (OFAC). This check helps you ensure the applicant is not a prohibited person or entity, as you are prohibited from doing business with them. OFAC results remain associated with the applicant and deal 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 resulting 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 Identify Fraud is on the rise and is part of why creating an identity theft prevention program is crucial for your dealership’s compliance and security. RouteOne’s IDOne offers options to help you combat Synthetic Fraud.

These compliance topics and more are discussed in greater detail in the RouteOne March 2021 compliance webinar that’s complimentary to view at your leisure. 


Other Compliance Tools you can Use

RouteOne has a wide array of complimentary tools you can use to help manage your dealership’s compliance requirements that include: 

  • User Permissions – Assign appropriate access for employees and designate finance sources to view customer data. Permissions can be set and edited by the Dealer System Administrator (DSA) under the Admin tab in the RouteOne system.

  • Activity Alerts – Set security alerts for suspicious dealer user activity within the RouteOne platform. You can sign up for this option under Admin>Premium Services. 

  • IP Blocking – Prevent unauthorized access to sensitive customer data by blocking outside users. Contact the RouteOne Service Desk at 866.768.8301 to set up this service. 

  • Active Dealer User Report – Ensure that only your current, authorized employees can access your RouteOne system and receive information on users’ activity history.  This tool is located under Preferences in the Admin tab in your RouteOne system.


Build a Better Compliance Program

Your DSA can subscribe to IDOne in the RouteOne system under Admin  > Premium Services > IDOne and choose your preferred product – 700Credit, NCC, or Transunion®. Still need answers? Reach out to your RouteOne Business Development Manager, or call the RouteOne Service Desk at 866.768.8301.