10:15 am, May 28, 2025
Car dealers are having to battle increased levels of fraud and attempted fraud to go with a number of other challenges currently facing the motor trade.
That is according to the latest Forecourt Foresight report from Close Brothers Motor Finance which found that one in five automotive retailers have fallen victim to fraud.
The research also revealed that a further 31% of dealers have been targeted by attempted fraudsters, but were able to prevent the scams from being successful.
As a result of the sharp rise in cases, an sky-high 79% of dealers told the firm that they are now concerned over fraud having an impact on their business, in contrast to only 4% who said they are not concerned at all.
In order to prevent fraudsters from impacting on business, more than three quarters (76%) of dealers are now conducting customer ID and credit checks, while almost two thirds (64%) have provided training for colleagues.
Meanwhile, two in five (40%) now use fraud protection software, with only 7% not planning to use it at all in the future.
Commenting on the findings, which surveyed 100 car dealers across the country, John Cassidy, managing director of sales at Close Brothers, said: ‘Unfortunately fraudulent activity is becoming more and more prevalent across the motor industry, and dealers will need to consider introducing more stringent checks and investing in tools to prevent fraud.
‘At Close Brothers Motor Finance, we have already been taking a number of steps to protect our business and our dealer partners.
‘As well as enhanced identity verification and biometric checks, we have also adopted services such as Experian’s fraud score and Resistance AI to check documents, which has already prevented nearly £800,000’s worth of potential fraud.
‘Close Brothers Motor Finance has also been working with Cifas, the fraud prevention association, to utilise industry data more effectively.
‘We are committed to supporting our dealer network, and – as well as appointing internal fraud champions – have delivered training as part of our dealer masterclasses.
‘While we are proactively taking steps to enhance our support for dealers, it’s also important that colleagues across the network remain vigilant and alert to any fraudulent activity.’
