On the Dash:
- Nearly 80% of dealers report rising fraud over the past two years.
- Almost half lost four or more vehicles to identity fraud.
- Most dealers link increased fraud to digital and remote transactions.
Identity fraud is accelerating across U.S. auto dealerships as more vehicle transactions move online, according to new data by eLEND Solutions at the 2026 NADA Show.
The snapshot survey, conducted online among self-identified dealers in late 2025, found that 77% of respondents have seen an increase in fraud-related activity over the past 24 months. Nearly half, 48%, reported losing four or more vehicles to identity fraud during that period, while 24% said they lost 10 or more units. In the past year alone, 41% experienced vehicle losses tied to identity fraud.
Seventy-six percent of dealers said fraud has increased by at least 20% in the past two years. Many respondents pointed to the growing use of remote and digital purchase transactions as a primary driver. Thirty-nine percent said 40% or more of their fraud cases are linked to the rise in remote deals. An overwhelming 95% believe that as the vehicle sales and financing process becomes more digital, identity fraud will continue to grow and become harder to prevent.
Dealers identified fake driver’s licenses as the leading cause of vehicle purchase fraud. eLEND executives noted that while driver’s licenses are central to identity verification, many stores rely on scanners that lack forensic authentication, DMV validation and personally identifiable information data matching, leaving vulnerabilities in the process.
Dealers identified fake driver’s licenses as the leading cause of vehicle purchase fraud. Survey findings indicate that weaknesses in identity verification processes, particularly around driver’s license authentication and data matching, remain a key vulnerability for many stores.
The findings underscore a growing operational and financial threat for dealerships as online retailing expands. Beyond the immediate loss of inventory, identity fraud can expose stores to lender chargebacks, compliance risks and reputational damage. As digital deal flow increases, dealers may need to reassess identity verification protocols, evaluate their technology stack and ensure staff are trained to spot red flags in both in-store and remote transactions. Strengthening documentation review procedures and integrating more robust authentication tools into the sales and F&I workflow could help mitigate risk while preserving a seamless customer experience.
