Identity Theft

Identity theft in a dealership context involves criminals using someone else’s personal information to fraudulently purchase or finance a vehicle. For example, a fraudster might use stolen identification and credit data to get an auto loan, leaving the real individual with a loan they never agreed to. Canadian dealerships must verify customer identity carefully (checking driver’s licences, comparing signatures, etc.) to prevent such fraud. Red flags include mismatched information or customers reluctant to provide ID. If identity theft is suspected, staff should halt the transaction and alert authorities. Preventing identity fraud is critical, as delivering a car on a false identity often means the dealership and lender will face losses when the fraud comes to light.