Automotive theft and fraud are huge issues in Canada right now. What can you do to protect your dealership and your customers?
Auto theft is a huge issue in Canada right now, and for dealerships as well as consumers. The “old days” of trusting everyone are over.
Vehicle theft is a big part of it, but you also have to protect yourself and your customers from identity theft, fake identification, and falsified records. Here are some suggestions on how to do that.
Protect yourself from vehicle theft
Auto theft is usually a crime of opportunity. Your goal is to make it as inconvenient as possible to make off with a vehicle.
- Sales and service key boxes shouldn’t be visible to the public, and should be checked daily to ensure all keys are there. Store second-set keys separately. Watch for “customers” who seem interested in where you keep your keys. At closing, lock the key box and the door to the room where it’s kept. A coding system is more secure than putting the vehicle information on the key tag.
- Consider an electronic key system. Depending on the system, these can register when a key went out and who has it; limit accessibility; and even track keys by GPS.
- Never leave a vehicle with the key in it, even if it’s in the service drive-through. When you bring a vehicle to the door for delivery or after a service visit, shut it off and hold the key. Thieves have been known to jump into a running vehicle in those few seconds between when you get out and the customer gets in.
- Ideally, the after-hours drop box should have a chute that sends keys inside the building. If that’s not possible, it should have a baffle so keys can’t be fished out of it.
- Put premium vehicles at the back of the lot with not-quite-as-enticing models parked in front. At night, block the gate with an inexpensive used car.
- On test-drives, ask for a second (or even third) piece of ID along with the driver’s licence, and photocopy the front and back of all. Watch for fakes, especially with out-of-province licences. Most provincial alcohol/gaming sites have information on how to spot a fake. Print out and distribute their guidelines to staff for quick access. When a customer returns from a test-drive, immediately use the key to ensure it wasn’t switched for another one.
- Thieves watch for routines, so switch up regularly. Don’t send someone to the bank at the same time each day; vary which doors you unlock or lock first.
- If you suspect someone and they leave, call any neighbouring dealers with a heads-up. You can create a “neighbourhood watch” where everyone works together.
Protect your dealership from fraud
- Be wary if someone frequently checks notes when filling out any forms. Most people have to double-check some items, of course, but watch for those who look like they’re working from a “cheat sheet.” Compare application forms for consistency in spelling and numbers.
- Look for information about new scams by using Google, the Competition Bureau of Canada, and your insurance or credit providers. Keep your staff up-to-date on scam detection.
- Authenticate all information given, including matching a trade-in’s ownership against the customer’s data before adding it to the deal.
- “Synthetic” identity fraud is where people create identities and credit scores using a combination of real and false information. Warning flags on a credit report can include numerous credit inquiries in a short period; credit history out of sync with the person’s age; or inconsistencies between the report and the information the person gives you. Work with your credit providers on best practices to avoid fraud.
- As much as you’d like to think otherwise, your employees could be part of the problem. It used to be just parts or supplies going home with them. Today, it can include stealing customer data; “straw purchases” when they manipulate information to get a loan on someone’s behalf; or stealing credit card numbers or chargebacks. Do a thorough background check when hiring, and immediately investigate any accounting discrepancies or irregularities.
Protect your customers from theft
- Consider offering aftermarket protection devices, either during purchase or at follow-up visits or the service counter. These can include tracking devices, Faraday key pouches, steering wheel or pedal locks, wheel chock locks, or battery disconnectors.
- Protect your customers’ personal information as closely as your own. Never leave files lying around; keep filing cabinets locked; and lock all offices at night. Equip all computers with privacy screens, and shut off the monitor if you have to leave your office. Use a paper shredder, or if you use a shredding company, ask for a locked bin for documents waiting to be shredded.
- Don’t talk to your customers on speakerphone. Keep their half of the conversation private, and make sure your voice isn’t carrying through the store for others to hear.
- Use proven data security measures on your computer systems, including on your credit/debit machines; set the computer system so everyone must frequently change their passwords; and avoid using emails for sensitive information, such as credit card numbers.
All of this is a lot of work and usually involves spending money, but these days, it isn’t “if” your dealership will be targeted but “when.” And overall, it’s easier to prevent crime than to deal with it after it happens.