Four out of five dealerships in a new survey have lost a vehicle to identity fraud in the past year and a similar proportion said they'd encountered at least one fraudulent loan application, according to research by eLEND Solutions.
A third-quarter poll by eLEND of more than 700 dealerships — nearly all of which were franchised — revealed 79 percent had an identity fraud-related loss in the past year. Sixty percent lost at least three vehicles because of identity fraud.
A similar proportion of dealers, 80 percent, said they encountered at least one fraudulent loan application in the past year. Of that group, about one-third estimated the rate of fraud is as high as 1 in every 100 applications. Another 24 percent said they saw fraud in 1 out of every 150 prospective borrowers.
eLEND CEO Pete MacInnis, whose company sells driver's license validation technology, said feedback from dealer customers revealed an uptick in fraud: " 'Oh my God, we caught another one, we caught another one.' "