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Dealerships Falling Victim to Fraud

August 10, 2022
Dealer Bulletins Selling

The Ontario Provincial Police (OPP) are seeing a trend in auto financing and dealer-to-dealer trade frauds targeting dealerships across Ontario and Quebec.

What is auto financing fraud?

Fraudsters obtain financing (typically for high-end motor vehicles) utilizing stolen credit cards, fake identifications (driver’s license), and altered insurance cards.

What is dealer-to-dealer trade fraud, and how are dealerships affected?

Fraudsters impersonate a dealer to initiate a trade with another dealer. The fraudster will arrange for a specific vehicle to be purchased and delivered at an agreed-upon location. The fraudsters will provide the representative of the victim dealership with a fraudulent bank draft and arrange for a courier and/or a car carrier to pick up the vehicle.

Auto Financing Fraud – Signs to look out for:

  • Look for discrepancies provided by the customer. For example, income doesn’t match employment
  • Does the telephone number match the location where the customer resides?
  • Were multiple attempts required to process payment (credit or debit cards)?
  • Unusual behaviour (dropped off at the dealership and avoids CCTV cameras)
  • Purchasing high-end model vehicles without negotiation

Dealer to Dealer Trade Fraud – Signs to look out for:

  • Contact the dealership to confirm the transaction
  • Ensure salesperson and dealership are registered by visiting www.omvic.on.ca
  • Verify insurance information with the insurance company

Please note: OMVIC will be hosting a fraud prevention webinar in late September. We encourage dealers to look out for an email with details in the coming weeks.

Victims of fraud or attempted fraud are encouraged to report to the police of jurisdiction and to the Canadian AntiFraud Centre at 18884958501 or online at www.antifraudcentre.ca.

Note: This information was created to assist dealers/salespeople and is not a legal document. Registrants are encouraged to obtain independent legal advice.

Questions? The dealer support team is available to assist dealers in achieving and maintaining compliance with the MVDA. Please contact the Dealer Support team at [email protected] or by calling 1-800-943-6002 if you have any questions or concerns.