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Follow the Money to Find In-House, External Fraud

Automotive practice group chair Aaron Jacoby recently spoke with Automotive News about how fraud is becoming more sophisticated, organized, and difficult to track for dealerships and lenders.

Aaron talked about how he believes one of the most efficient ways for a dealership to find an in-house fraudster is to follow the money. “The first step is to inspect general revenue cash flow from finance and insurance. A sudden spike in sales of a certain product or from a certain finance manager could mean ‘you found the greatest product to sell or the greatest-ever finance manager,’” reported Automotive News. “But it also could mean the manager ‘has found a way to cheat people on a consistent basis. Track the numbers, and try to get to the bottom of why a spike occurred,’” according to Aaron. “If dealers don't, and there's a problem with the manager, ‘at some point or another, it's going to explode in your face.’”

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