The use of fake identification to fraudulently purchase vehicles at dealerships is a rapidly growing trend, said Doug Fusco, founder of Dealer Safeguard Solutions.
After a lull in synthetic identity theft during the COVID-19 pandemic, the use of fake identification to commit fraud has started to "explode," Fusco said. Dealer Safeguard Solutions is part of Informativ, which helps dealerships identify and combat sales fraud.
The fake ID documents fraudsters create are becoming more sophisticated and authentic looking, making it difficult for dealership personnel to detect.
Not discovering this fraud before a vehicle sale is made can lead to an overall burden for the dealer.
"Worst case, they lose the car; next worst case, they have to go through brain damage to get that car back — if they're lucky enough to get it back and it hasn't been shipped overseas or sent to some other part of the country," Fusco said.