Sadly, fraud occurs in dealerships in both up and down cycles and happens with more frequency than most dealers would like to believe. Without a systematic fraud program in place, fraud is nearly impossible to prevent, can be difficult to detect, and the financial impact of an undetected fraud can be catastrophic. The purpose of any fraud program is to provide a deterrent and to enable early detection prior to fraud becoming large enough to cause real financial pain for the dealership Add a comment
According to the FBI’s latest figures, vehicle theft has dropped for the sixth consecutive year. Based on that information, it would appear that theft isn’t an issue that dealers need to be particularly concerned about. However, those figures are deceptively positive, because the rate of stolen vehicles that are never recovered has reached a 20-year high (43 percent). That alarming percentage translates to more than 400,000 vehicles not recoveredin 2008 (latest data available).Add a comment
We have all seen the commercials about identity theft: The ones with the guy that uses someone else’s credit card to go on lavish vacations or buy expensive jewelry. While the commercials may be funny, the situation is serious. The fact is identity theft is the fastest growing and most expensive crime today.Add a comment
Who are you hiring? Who did you hire yesterday?
In May of 2009 there was an article in the Katy Times about the Harris County Sheriff’s Office looking for two individuals who had defrauded several Houston area car dealerships of nearly $750,000. The two gentlemen in question were obtaining employment at various automobile dealerships in order to obtain customer information. With the information, they financed numerous vehicles. After they were done at one dealership they moved on to another and another.Add a comment
An ounce of prevention is worth a pound of cure. I heard this old saying from my elders when I was just a kid, but I haven't heard it in such a long time. I remember wondering what prevention was, and how much of it would make an ounce. At that time, I had a real good idea of what cure was, and the huge amount of it that would be needed to make a pound. In those days, cures weren'-t sugar coated or flavored to taste like mint, wild cherry, or strawberry. I knew that I had no desire to have to take a pound of any of the cures I had been exposed to up to that point in my life-so I was really interested in learning about prevention.Add a comment