Notable increase in RV frauds

There has been a notable increase in RV frauds nationwide. Major Financial Institutions in Canada have reported multiple instances of RV fraud come through their Indirect Lending channels in recent months. Falsified documentation and identity (ID) theft have been identified as core challenges - especially where remote applicants are involved. In this heightened fraud environment, it is essential that dealers use robust means to fully authenticate clients and ensure the accuracy of the information they provide. This includes but is not limited to:

• Using a licensed Sales representatives to conduct in-person ID verification at the time of application submission
• Only accepting original, valid, and current government issued photo ID documentation (more than one if necessary)
• Examining the front and back of each original ID document to ensure that it is not altered or defaced in any way and that the individual in the photo has a true likeness to the person applying for the loan
• Ensuring that the name and address provided by the client matches the name and address on their ID document(s)

Failure to do so, can result in legal and financial implications for the dealership.

There are also technological tools available to assist in detecting issues with identification. These are available commercially. You can speak to your financial institution partners for assistance and recommendations.