Synthetic IDs Are Getting Smarter. But How Do You Protect Yourself?
The customer shows up.
Valid driver’s license. Clean credit. Friendly face.
They test drive, negotiate, and close.
A week later, the bank calls—the identity was fake.
Welcome to modern fraud: synthetic, professional, and built to beat the systems most dealerships still trust.
The Synthetic ID Playbook
This isn’t stolen identity fraud. It’s manufactured identity fraud—and it’s spreading across Canadian dealerships faster than most want to admit.
Here’s how it works:
• Start with a real SIN (often from a child or deceased person)
• Layer on fake name, fake address, new phone
• Open a few trade lines to build history
• Apply for auto credit like any other buyer
By the time that customer is in your showroom, their identity has been “aged” to pass every basic check. They’ve rehearsed the backstory. They know exactly what questions you’ll ask.
Why Dealerships Keep Falling for It
Because most of the fraud happens inside your store, not online.
It’s in the handshake, the paperwork, the scanned ID.
And your team? They’re good at selling cars—not spotting forged documents and synthetic credit files.
Let’s be honest:
• Most dealerships still rely on a quick glance at the license
• If it scans and the address matches, it’s “good enough”
• Financing teams rarely have tools to verify the identity itself
• There’s no real-time system checking if this person even exists
That’s not a verification process. That’s blind trust.
What a Real Defense Looks Like
If you want to stop fraud at the source, you need layered verification built into your actual workflow—no apps, no extra steps, no excuses.
Here’s what works:
Document Forensics (Built-In)
Scan the ID—but don’t stop there. Run it through validation tech that checks:
• Hologram integrity
• Font and layout consistency
• Barcode structure against provincial standards
• Expiry logic and tampering clues
Shameless Plug: Our platform checks IDs, documents and files against Canadian issuing standards in real-time—no second guessing.
2. Phone & Address Validation
Just because the license says “Montreal” doesn’t mean the phone should ping from Burnaby.
Cross-check real-time device signals, VoIP usage, and address data to flag inconsistencies.
Shameless Plug: Our platform validates documents and IDs with over 100 different metrics when evaluating for fraud.
3. Credit Profile Consistency
Does the credit bureau actually recognize this identity?
Are the age, SIN, and name tied together across sources?
Synthetic IDs often fall apart under triangulation.
Shameless Plug: We automatically compare application details against bureau records—and alert when they don’t align.
4. Audit Trails & Instant Flagging
If your team flags a suspicion, is it tracked?
Can you instantly review the risk score or explain why a deal was blocked?
You need tools that back up your gut instinct with real evidence.
Shameless Plug: Our verification log gives you the “why” behind every risk score—instantly.
Why It Matters
One bad unit can cost you:
• A full vehicle loss
• Time, paperwork, and reconditioning you’ll never recover
• A chargeback from the lender
• A compliance audit
• And a massive headache for your GM and F&I team
All because someone slipped through with a good fake and a smooth story.
Fraud is evolving. If your checks haven’t changed in 5 years, you’re overdue.
Want to test your current ID process against real-world fraud signals? We’ll run a no-risk check and show you where you’re exposed. Contact us.
