For many dealers, the rise in fraud is no longer an occasional concern—it’s a daily reality. Vehicles can be driven off the lot by individuals using stolen or synthetic identities, leaving dealers, lenders, and insurers to dispute who bears the loss. Industry data cited by 700Credit shows that over half of dealerships report losing at least one car a month to fraud, while nearly a third lose five or more. The financial and reputational risks are staggering. Dealers are losing cars at alarming rates. Lenders and insurers are putting increasing pressure on dealerships to put stronger fraud detection processes in place.
700Credit has responded with technology that makes fraud much harder to commit. Our driver’s license verification product allows dealerships to validate identities by scanning licenses, cross-checking them with DMV records, and even using biometric comparisons between license photos and real-time selfies.
The system also performs synthetic fraud checks and OFAC validations, ensuring not just that the buyer is who they claim to be, but also that the transaction is compliant with federal regulations. Our company’s innovations go beyond fraud detection. How dealerships handle sensitive consumer information has become just as critical as preventing theft. For years, it was common practice to photocopy a driver’s license and store it in a paper deal jacket—a method that not only feels outdated but also exposes dealerships to significant risk. Paper records can be stolen, misplaced, or misused, often becoming prime targets for identity thieves. Gone are the days of sales reps texting consumers, “Send me a copy of your driver’s license”. It’s not secure. If an employee leaves or their phone is stolen, all of those identities are compromised.
700Credit solved this by eliminating paper records altogether. Our solutions allow dealerships to scan licenses directly into secure electronic deal jackets, with restricted, monitored access. Consumers can also complete the process remotely by scanning a QR code, uploading images of their license, and confirming their identity with a selfie—keeping sensitive documents out of circulation and significantly reducing risk.
The impact of these solutions is best seen in practice. A major Florida dealership once faced more than $2 million in theft-related losses, leading its OEM partner to sever ties until improvements were made. After discovering that one of its top-performing stores had experienced zero theft for over a year thanks to 700Credit’s QuickScan solution, the OEM mandated its adoption. The OEM told the struggling dealership, “You need to call 700Credit and get QuickScan. Until you do, you cannot process any more deals.” The directive underscored just how critical these tools have become.
Despite growing competition, 700Credit continues to stand apart. When we first launched our license verification product four years ago, only a handful of competitors were offering similar technology. Today, the market is crowded, but we lead by continuously improving our products and ensuring seamless integrations with electronic deal jackets, DMS platforms like RouteOne and Dealertrack, and other third-party providers. Our integrations have always been a strength. Many competitors overlook the importance of securing data after validation, but for us, that’s just as critical as the verification itself.
As dealerships face rising costs from credit bureaus and FICO, alongside the ever-present risk of ransomware and phishing attacks, we’re focused on both technology and education. Protecting sensitive data requires not only robust systems but also well-trained staff who understand the risks and how to avoid them. One of the biggest challenges is making sure data at 700Credit is secure— and that our partners’ data is secure. It’s also about training employees not to fall for phishing scams. The risks are real, and we all need to stay ahead of them.
With more than 20 years of experience and over 20,000 dealerships as customers, 700Credit has built trust in an industry where both speed and security are paramount. our suite of compliance and credit solutions, combined with a relentless focus on dealer and consumer protection, has made us a leader in addressing the toughest challenges dealerships face today. Our goal is to continue building solutions that solve real problems while safeguarding the future of dealerships.
By blending innovation, integration, and a deep understanding of dealer challenges, 700Credit has redefined what it means to provide fraud prevention and data security in the automotive industry. As digitalization accelerates, our role as a trusted partner has never been more vital—ensuring that the car buying experience remains both seamless and secure.