Worst-case scenario: The inside job

Jim Henry is a special correspondent for Automotive News

Car dealers can't let every little thing bother them. But the possibility of an inside job -- especially in the F&I department -- must keep a few dealers awake at night.

Case in point: A couple of recent stories in which dealership insiders who knew how to work the system are accused of taking part in illegal schemes that used real customer information. (See stories below)

The Red Flags Rule, which has been in effect since 2008 but only began being enforced by the Federal Trade Commission this year, is aimed at protecting consumers from identity theft. The same precautions also protect the dealership from straw buyers who aren't who they say they are.

But what if the same hand that's supposed to wave the red flag is in on the scam?

That's something to lose sleep over.