Red Flag

Red Flag Helps Reduce Fraud Losses and Liability

The truth is, it’s hard to be certain that people are who they say they are. And now there are federal red flag regulations in place to help prevent identity theft and fraud—and your dealership must comply. So, where do you begin?

How about with ID verification? Red Flag helps make it easier to detect identity theft, comply with red flag regulations, and reduce fraud losses and liability for your dealership. The reports are accessible from multiple points in the deal—from prospecting to the F&I office—giving your staff the flexibility they need to be effective and compliant.

Red Flag does not, by itself, satisfy your need to have a comprehensive identification theft detection program, but we help automate the process.

Quickly identify every customer and spot potentially fraudulent deals

As part of your complete identity theft prevention program, Red Flag gives you:

  • Automatic verification of each customer’s identity with address, social security and phone number checks
  • The ability to check and cross-check driver's licenses and social security documentation
  • Additional out-of-wallet challenge questions when needed
  • Tools to identify potentially fraudulent deals
  • Detailed reports to show you when an identity may be compromised
  • Easy-to-understand 999-point scoring, which lets you evaluate the report quickly

You can easily access Red Flag reports through our ADP Dealer Management System, ADP Credit or Credit Check whenever you check a buyer’s credit—there’s no need to jump between systems. Only Red Flag gives you access to an exhaustive credit database, making it easy to verify every customer’s identity and spot potentially fraudulent deals, quickly and easily.