Page 8 - GIADA Nov-Dec 2020

FEATURE

Experts Share Tips for Countering

Dealership Fraud

“Check the driver’s license. Take 30 seconds and look up their address on

Google Maps, and make sure it’s not an open field,” says Doug Fusco,
founder and CEO of Dealer Safeguard Solutions.

By Jim Henry

Identity theft, verifying customer identities Randy Henrick, president of Randy He says dealerships should rehearse how
and protecting customers’ private Henrick & Associates, Oyster Bay, NY. they would respond to a data breach.
information are potentially huge liabilities
for dealerships. Here are some tips from “The FTC isn’t going to go after anybody just HOLD YOUR HORSES
panelists on a recent webinar on dealership- for having a breach. But you’ve got to have Doug Fusco, founder and CEO of Dealer
level fraud by the Association of Dealership a plan and implement it quickly. That’s how Safeguard Solutions, McKinney, TX, says
Compliance Officers, Colleyville, TX. the FTC will judge you,” he says. “Do you dealerships shouldn’t get so caught up
supply a notice to customers? Do you have in the desire to do a deal that they miss
BE PREPARED template documents, template notices that obvious warning signs. “Somebody comes
Regulators expect dealerships to react can be filled in? Do you have one person — into the dealership. They’re in a hurry.
quickly and effectively after they discover only — who’s going to communicate with They’re antsy. They want to take delivery
customer data has been exposed, says the media?” somewhere other than their home or work
address. Take an extra five minutes. Check
the driver’s license. Take 30 seconds and
look up their address on Google Maps, and
make sure it’s not an open field,” he says.
PRIVATE LINE
Dealerships that are careless with
customers’ personal information have an
“appetite for risk,” says Terry O’Laughlin,
director of compliance for Reynolds &
Reynolds, Dayton, OH.

Best dealership practices include tightly
restricting access to customer information
and not allowing anyone access from
outside the dealership, he says.
“Managers and dealers want to take
information over the cell phone. That type
of information should be very, very carefully
controlled — incoming and outgoing.” n

SAVE THE DATE
CONVENTION 2021

July 14- July 17
Stone Mountain Park
First State Mandated

CE Class, July 16

6 | GIADA Independent Auto Dealer NOV/DEC 2020