Car dealerships rev up digital ID verification to counter rise in identity fraud

Whether it’s a fake credit history, a phony license or a test driver with a stolen identity who makes tracks with a vehicle, auto dealerships deal with a host of new fraud threats that can lead to heavy losses. Digital identity verification presents itself as a solution across the dashboard, as providers expand their IDV product lines to meet new verification and authentication needs in the automotive industry.

Kudelski launches identity verification tool with biometrics from Idemia

Kudelski IoT, an Internet of Things (IoT) division of Swiss digital security company conglomerate Kudelski Group, is launching an identity verification product for the U.S. automotive market, powered by Idemia.

A release says RecovR ID Check is “designed to strengthen dealership defenses against identity theft and fraud,” safeguarding processes such as test drives, sales and financing transactions, both in person and online.

The identity verification product offers easy integration into existing dealership workflows, and has no special equipment costs or monthly fees. “Dealers simply purchase a prepaid package of ID checks based on their needs.”

“RecovR ID Check is the latest extension of the successful RecovR product line, which has already revolutionized automotive retail with its lot management and vehicle theft recovery and key tracking solutions,” says Patrick Hauert, senior VP of asset tracking at Kudelski IoT.

“Our mission is to develop technology solutions that resonate with the dynamic needs of today’s market. RecovR ID Check enhances auto dealers’ fraud prevention program with a powerful tool that helps ensure secure, trustworthy transactions and reduces loss.”

More document authentication, IDV options from eLEND Solutions

Identity fraud prevention tools from eLEND Solutions blocked over one billion dollars in potential vehicle purchase fraud in 2024, according to a release from the company.

The announcement made at the 2025 NADA Show says the figure represents over 30,000 red-flagged driver’s license scans – still merely the tip of a massive fraud-berg.

“There is no question that vehicle purchase fraud is one of the top challenges facing auto dealerships today, with billions of dollars on the line,” says Pete MacInnis, CEO of eLEND Solutions. “Without validating/authenticating ID documents and buyer identities, dealerships remain incredibly vulnerable, especially as the auto purchase transaction becomes increasingly digitized.”

In response to the threat, eLEND is accelerating expansion of its suite of identity products. Per the release, the firm’s offerings “encompass robust document authentication, consumer data verification and proof of presence technologies.”

They include ID Drive, which “performs an average of 35 forensic tests for robust document authentication,” as well as its mobile version.

The Identify product “matches up consumer PII data against hundreds of databases” and establishes “proof of presence” with OTPs.

DMV Data Match “extracts the data from scanned driver license documents and matches them up with official government DMV databases in real time through APIs with participating government agencies in 41 states.”

Pre-screen and pre-qualification reports “can be pulled from data extracted from driver license scans, instantly identifying a customer’s buying power prior to the test-drive.”

Finally, integration with the 700 Credit identity verification platform “delivers identity verification tools to include OFAC Terrorist Search, ID Match, Synthetic Fraud, Military Lending Act, Red Flag and Out of Wallet Questions.” 700 Credit is a provider of credit reports, compliance, authentication, identity verification and fraud detection for the auto industry.

Article Topics

700Credit  |  biometric authentication  |  digital identity  |  document verification  |  fraud prevention  |  IDEMIA  |  identity verification  |  selfie biometrics