Alarm raised as fraud attempts surge, research reveals

A worrying number of motor dealers are grappling with rising levels of fraud and attempted scams, according to new research from Close Brothers Motor Finance.

Findings from the latest Forecourt Foresight survey show that one in five dealers (20%) have already fallen victim to fraud, while nearly a third (31%) report having successfully thwarted attempted scams.

The trend has sparked widespread concern across the industry, with 79% of the 100 dealers surveyed, admitting they are worried about the potential impact of fraud on their business operations. Only 4% said they were not concerned at all.

In response, motor dealers are ramping up their defences. The majority (76%) now conduct thorough ID and credit checks on customers, and 64% have introduced fraud awareness training for staff.

Meanwhile, 40% have adopted fraud protection software - a figure expected to rise, as only 7% of dealers say they have no plans to invest in such tools.

John Cassidy, managing director of sales at Close Brothers Motor Finance, said: Unfortunately, fraudulent activity is becoming increasingly prevalent in the motor trade. Dealers must consider tightening their checks and investing in the right technologies to stay protected.

“At Close Brothers, we’ve implemented enhanced ID verification, biometric checks, and fraud scoring tools like Experian’s fraud score and Resistance AI - measures that have already stopped nearly £800,000 worth of attempted fraud.”

Close Brothers has also partnered with Cifas, the UK’s fraud prevention community, to better utilise shared industry data. Internally, the company has appointed fraud champions and incorporated fraud prevention training into its popular dealer masterclasses.

Cassidy added: “We’re fully committed to helping our dealer network stay secure. But it’s crucial that all dealership staff remain vigilant and proactive in identifying and addressing suspicious activity.”