Automotive News - September 25, 2017 - Supplement - S11

losing expensive vehicles because they accepted forged treasurer's checks. "Once the car
leaves the lot," Curtis says, "it's very difficult to get it back."
The third way that fraudsters target dealership money is through the national automated-clearing-house system. ACH is used to transfer funds electronically between companies and individuals, usually for routine payments in established business relationships.
"What we are seeing is that the speed of ACH transfers has accelerated over the past
year because of same-day ACH transactions," Curtis says. "It's a really good thing; it's
what customers have asked for.
"But what it also means is that a business has less time to reconcile accounts and
identify fraudulent transactions."
One type of ACH fraud typically tries to get a business to redirect funds meant for
a third party, like a vendor, into a fraudster's bank account instead. The perpetrator will
email the dealership asking to change the information in a vendor's payment profile -
the street address or bank account information, for example. That small change can
mean that a vendor's printed check is mailed to a fraudster or that a vendor's electronic
payment ends up in someone else's bank account.
A second type of ACH manipulation occurs when a fraudster gains access to a business's bank account information and initiates a debit from the business to a new account.
Bank account numbers are surprisingly easy to acquire - they are included on every
printed check.
The ACH debit might come through with a vendor name or the name of a made-up
government agency that looks legitimate. It's o en a small amount of money at first, in
hopes of not attracting attention.
"It might be a payment to something you've never heard of, but it's a small amount of
money," Curtis says. "That's a test. If you don't catch it, the amount might be larger the
next time.
"And then o en if you've seen the name a couple of times, you might not think anything of it."
Most o en, dealerships are going to block these fraud attempts, he says. "But if a $10
payment goes through, the fraudster realizes people aren't paying attention - and he or
she is going to try again," Curtis says.
And before long, the payment amount can be significant."The common denominator
in all of this is that fraudsters are always looking for weakness," Curtis says. "They try to
manipulate employees and steal information. That is how it always starts."
Once a fraudster has breached the system or gained an employee's trust, the information can be used against the dealership, almost inevitably to get money.
First and foremost, Curtis says: "The best thing you can do for your dealership is to
start having a conversation about possible fraud and how to prevent it. Prioritize your
risks, get your staff educated and take it one step at a time. Remember that it's not a
one-size-fits-all solution, either."
Many dealers say they are frustrated and overwhelmed by the issue, Curtis says. "They
say: 'I don't know what to do, so I'm not going to start. I can't take the time anyway.'
"That's a mistake," Curtis says.
"It's hard to go from being unprotected to being fully protected overnight, but it is
critical to keep making your systems better, because fraudsters keep getting better at
stealing money."

Fraudsters target dealership
money through the national
automated-clearing-house
system (ACH).

PREVENTING FRAUD

n Once a fraudster has breached
the system or gained an employee's
trust, the information can be used
against the dealership, almost inevitably to get money.
n The best thing you can do for
your dealership is to start having a
conversation about possible fraud and
how to prevent it.
n Prioritize your risks, get your staff
educated and take it one step at a
time. Remember that it's not a onesize-fits-all solution, either.
n Many dealers say they are frustrated and overwhelmed by the issue,
so it does not get addressed. That's
a mistake.
n You don't have to go from being
unprotected to being fully protected
overnight, but try to keep making your
systems better, because fraudsters
keep getting better at stealing money.

Table of Contents for the Digital Edition of Automotive News - September 25, 2017 - Supplement