New research from Close Brothers Motor Finance’s Forecourt Foresight revealed a significant increase in fraud and attempted fraud among motor dealers.

The study shows that one in five (20%) dealers have been victims of fraud while an additional 31% have experienced attempts that were successfully prevented.

As a result, 79% of dealers express concern about the impact of fraud on their businesses, with only 4% reporting no concern. The increased threat has led to dealers implementing protective measures.

Close Brothers sales managing director John Cassidy said: “Unfortunately, fraudulent activity is becoming more and more prevalent across the motor industry, and dealers will need to consider introducing more stringent checks and investing in tools to prevent fraud.

“At Close Brothers Motor Finance, we have already been taking a number of steps to protect our business and our dealer partners. As well as enhanced identity verification and biometric checks, we have also adopted services such as Experian’s fraud score and Resistance AI to check documents, which has already prevented nearly £800,000’s worth of potential fraud. Close Brothers Motor Finance has also been working with Cifas, the fraud prevention association, to utilise industry data more effectively.”

The research also indicates that 76% of dealers conduct customer ID and credit checks, and 64% have provided staff training to address fraud risks.

Additionally, 40% of dealers now use fraud protection software, with just 7% stating they have no plans to adopt such tools in the future.

Cassidy added: “We are committed to supporting our dealer network, and – as well as appointing internal fraud champions – have delivered training as part of our dealer masterclasses. While we are proactively taking steps to enhance our support for dealers, it’s also important that colleagues across the network remain vigilant and alert to any fraudulent activity.”