Technology providers that connect used car managers with sellers of privately owned vehicles are taking on a significant challenge: How do dealers protect themselves — and their finance sources — from fraudulent transactions that cost money and damage relationships?

So says Brad Parker, co-founder and CEO of DealNow.com, who says the solutions offered by his company and others rely on “robust” tools to properly verify sellers’ identities and prevent fraud.

“Buying or selling a vehicle privately has always been fraught with risks and frustrations. The process often involves dealing with unknown parties, which can lead to concerns about the legitimacy of the transaction,” Parker writes in his latest contribution to DealerELITE. “Recent statistics highlight the severity of the problem, with a staggering 98% growth in synthetic identity fraud attempts during vehicle transactions.”

Read more at DealerELITE