Nearly 80% of dealers have seen growth in fraud-related activities in past 24 months, according to new eLEND survey, with nearly half losing 4 or more cars to identity fraud in the past two years

Identity and fraud-related activities have increased in the retail automotive industry over the past two years according to the results of a new snapshot survey of dealerships released by eLEND Solutions at the 2026 NADA Show, with the majority of dealers surveyed worrying that increasing digitization of the purchase process is not only leading to increases in identity fraud but also is making it less preventable.

Seventy-seven percent of auto dealer respondents in the survey reported seeing a growth in fraud-related activities over the past 24 months, with 48% reporting losing four or more vehicles to identity fraud, and nearly a quarter putting that number at 10 or more vehicles lost in the past two years. In the past year alone, 41% of dealers surveyed said they had experienced identity fraud vehicle losses. "This is a snapshot of the onslaught of fraud auto dealerships are experiencing in all aspects of their business, much of it a result of the increasing digitization of the auto purchase process," said Pete MacInnis, CEO and Founder of eLEND Solutions. "The data underscores that identity fraud is especially pernicious, even though its number one factor – the driver's license – makes it the easiest to solve." Forty percent or more of identity fraud is related to the increase in remote/digital purchase transactions said over one-third of dealers surveyed, with 95% saying that as more of the vehicle transaction process becomes digital, identity fraud will continue to grow and become even more challenging to prevent. Meanwhile, fake driver's licenses were cited as the top reason for the increase in vehicle purchase fraud by nearly half of respondents. "Unfortunately, the problem is increasing because too many dealers rely on driver's license scanners that lack forensic authentication and DMV and PII data matching. As fraudsters become more sophisticated, and AI is poised to inflate fraud schemes, it is critical that auto dealerships equip themselves with tools that are able to dive deep into data to ensure that their customers are exactly who they say they are," continued MacInnis. Driver's license scanners with comprehensive data authentication can also be leveraged to help auto dealerships by enabling consumer consented pre-qualification that can be pushed directly into the deal jacket, a benefit that over 80% of respondents said could be meaningful. eLEND Solutions' Identity Solutions, including ID Drive, ID Drive Mobile, Identify, DMV Data Match, and 700Credit Identity Verification Platform, have prevented over $1 Billion in potential identity fraud annually since 2022. The snapshot survey was conducted online among self-identified auto dealers in late 2025. Data Highlights:

77% of dealer respondents have seen an increase in fraud-related activities over the last two years.
76% say fraud has increased 20% or more in the past two years.
In the past two years, 48% lost 4 or more vehicles to identity fraud, 24% lost 10 or more.
41% have experienced fraud in the past year alone.
39% of dealers say 40% or more of fraud is related to the increase of remote/digital purchase transactions.
95% agree that as the vehicle transaction process becomes more digital, identity fraud will continue to grow and be more challenging to prevent.
81% said a driver's license scan converted to a prequal and pushed into the deal jacket would be a meaningful benefit.

2026 NADA Show attendees can learn more about the survey findings and explore how eLEND Solutions is addressing identity fraud in an increasingly digital retail environment at the Las Vegas Convention Center, West Hall Booth #4951W, just south of the Toyota exhibit, February 4–6.

ABOUT eLEND SOLUTIONS

eLEND Solutions™ (AKA DealerCentric Solutions®), is an automotive FinTech company providing a vendor neutral, API-based middleware solution for true end-to-end connected retailing. Our solution bridges the gap between shopping and buying – delivering transactable, lender-matched payment options and funding scenarios at the point-of-sale, online and in-store. The platform specializes in hybrid credit, identity verification, and 'pre-desking' finance solutions. By changing when and how the shopper is introduced to realistic payment information and dealership financing options, the combination of technology and data enables the dealer and the customer to come together much faster – and more profitably. Media Contacts: Crystal Hartwell, eLEND Solutions, 1 714-987-1016, crystal@mwebbcom.com Angela Jacobson, 1 714-454-4776, angela@mwebbcom.com

Nearly 80% of dealers have seen growth in fraud-related activities in past 24 months, according to new eLEND survey, with nearly half losing 4 or more cars to identity fraud in the past two years

ABOUT eLEND SOLUTIONS

SOURCE: eLEND Solutions

Tagged: FinTech

Dealership Fraud Surges as Digital Vehicle Purchases Increase