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Quiz:
Take the Compliance Challenge
What you don’t know about compliance and identity verification can cost you – in fines, fraud loss, and hits to your dealership’s reputation.
Take this quick, 5-question quiz to test your awareness of some of the most vital compliance requirements and fraud risks dealerships face.
True or False: A driver’s license scan is good enough to verify a customer’s identity.
The high-quality fake IDs that today’s fraudsters create often pass basic checks. Dealerships should use AI-powered ID validation that cross-reference data to make sure that all fields exactly match trusted sources. To protect your dealership and your inventory, make sure to run all these tests before allowing customers to test drive vehicles.
The high-quality fake IDs that today’s fraudsters create often pass basic checks. Dealerships should use AI-powered ID validation that cross-reference data to make sure that all fields exactly match trusted sources. To protect your dealership and your inventory, make sure to run all these tests before allowing customers to test drive vehicles.
True or False: Inconsistencies in credit report history can be a sign of synthetic ID fraud.
An inconsistent credit report history is one of the red flags that can indicate that a buyer is using a mix of real and fake data on their credit application. Dealerships should use fraud detection and alert tools that can spot these and other inconsistencies. Fraud scoring systems assess the risk of fraud using algorithms to look for patterns that indicate data mismatches, high-risk behaviors, and known fraud indicators to alert dealers to fraud exposure risk and help protect their dealership from financial loss and reputational harm.
An inconsistent credit report history is one of the red flags that can indicate that a buyer is using a mix of real and fake data on their credit application. Dealerships should use fraud detection and alert tools that can spot these and other inconsistencies. Fraud scoring systems assess the risk of fraud using algorithms to look for patterns that indicate data mismatches, high-risk behaviors, and known fraud indicators to alert dealers to fraud exposure risk and help protect their dealership from financial loss and reputational harm.
True or False: Your dealership needs to keep a record of OFAC checks for five years.
Compliance with OFAC regulations now requires that dealerships keep a record of OFAC checks for 10 years. Remember, you need to run OFAC on all deals, not just cash. You should not do business with any customer until you are certain they are not on the SDN List.
Potential Fines: Criminal $250k + JAIL per each individual violation; Civil $11.3k per individual violation*
*As of November 2025 and subject to alteration depending on the circumstances of violations. Please seek legal counsel for verification and further details.
Compliance with OFAC regulations now requires that dealerships keep a record of OFAC checks for 10 years. Remember, you need to run OFAC on all deals, not just cash. You should not do business with any customer until you are certain they are not on the SDN List.
Potential Fines: Criminal $250k + JAIL per each individual violation; Civil $11.3k per individual violation*
*As of November 2025 and subject to alteration depending on the circumstances of violations. Please seek legal counsel for verification and further details.
True or False: Your dealership needs to send an adverse action notice to an applicant who was approved for credit but did not end up purchasing the vehicle on credit.
Adverse action notices are a dealership’s responsibility as a loan originator or an indirect lender. If an applicant is approved for credit but a deal did not go through, you must send the applicant a notice.
Potential Fines: $53,088 per violation.*
*As of November 2025 and subject to alteration depending on the circumstances of violations. Please seek legal counsel for verification and further details.
Adverse action notices are a dealership’s responsibility as a loan originator or an indirect lender. If an applicant is approved for credit but a deal did not go through, you must send the applicant a notice.
Potential Fines: $53,088 per violation.*
*As of November 2025 and subject to alteration depending on the circumstances of violations. Please seek legal counsel for verification and further details.
True or False: The Red Flags Rule requires dealerships to implement a written Identity Theft Prevention Program designed to detect the “red flags” of identity theft.
A written Identity Theft Prevention Program (ITPP) is required to detect, prevent, and mitigate identity theft. There are 26 potential red flags that need to be considered in your dealership’s ITPP.
Potential Fine: As high as $4,983 per violation*
*As of November 2025 and subject to alteration depending on the circumstances of violations. Please seek legal counsel for verification and further details.
A written Identity Theft Prevention Program (ITPP) is required to detect, prevent, and mitigate identity theft. There are 26 potential red flags that need to be considered in your dealership’s ITPP.
Potential Fine: As high as $4,983 per violation*
*As of November 2025 and subject to alteration depending on the circumstances of violations. Please seek legal counsel for verification and further details.
Ready to feel even more assured when it comes to compliance? Dealertrack Compliance can protect your deals and your dealership through each step of the process.
