Stay Ahead of Fraud with Identity Verification and Red Flags Alerts
Protect your dealership and reputation with Identity Verification and Red Flags Alerts that detect fraud and reduce compliance risks.
Protect Against Fraud and Identity Theft Risks
Fraud poses serious challenges to dealerships, affecting both compliance and sales.
- First-party fraud occurs when a customer misrepresents their intent to pay for a vehicle.
- Third-party fraud involves someone using another person’s information to buy a vehicle without consent.
- Synthetic fraud combines real and fabricated data to create complex risks.
ProMax Identity Verification and Red Flags Alerts help you identify these threats quickly, protecting your dealership from financial loss and reputational damage.
$7.9 billion
Estimated fraud loss exposure in the automotive industry in 2023
$3,500 per citation
Penalty for non-compliance with Red Flags Ruling
10-20%
of dealers experienced an increase in fraud cases between 2020 and 2021.
Verify Identity to Prevent Fraud
Cross-reference key Personally Identifiable Information (PII) such as Social Security numbers, phone numbers, and addresses against trusted databases to confirm that customers match their ID, saving dealers up to $45k in fraud risk exposure.
This added layer of security safeguards your bottom line, strengthens customer trust, and supports smooth operations—especially when integrated with tools like Compliance Storage and Compliance Workflow.
Stay Compliant with Red Flag Rule
The Red Flags Rule requires dealerships to implement measures to detect, prevent, and address identity theft. Non-compliance can lead to significant fines, with higher penalties for repeat violations.
ProMax Red Flags Alerts, including Out-of-Wallet verification questions, help your dealership stay compliant while defending against fraud that could otherwise impact both your reputation and profitability. ProMax Red Flags Alerts help your dealership avoid up to $50,000+ in potential FTC fines per violation while defending against fraud that could impact your reputation and profitability.