Fraudsters Are Targeting Auto Dealerships in the Dallas-Fort Worth Area, Spring 2024

Gather Software Leads to Arrest at Texas Retail Store

FT. MYERS, FL — As the intended leader of dealer protection against ID theft and insurance fraud, Gather has identified a ring of fraudsters targeting auto dealerships in the Dallas-Fort Worth region of Texas. In the first half of May 2024 alone, Gather helped prevent the sale of three luxury vehicles to fraudsters targeting multiple dealerships in the Dallas-Fort Worth area valued at over $300,000 in potential fraud-based losses.

This is not just a report of one Gather client but a non-isolated event as many more cases have been reported across Houston, Dallas Proper, Miami and Connecticut to Gather. 

The first instance for Gather’s Dallas-Fort Worth client occurred on May 6th. A Texas woman worked through the dealership’s digital buying process to secure a $99,6000 captive finance loan for a luxury Cadillac Escalade. She provided a Texas driver’s license (that scanned) and car insurance cards for a seemingly active policy. With all documents in order, the woman was cleared for delivery.

However, when the woman went through the Gather process to verify her identity and active insurance status, Gather uncovered the driver’s license and insurance cards were fake. Furthermore, a biometric data analysis indicated further fraud concerns. Upon uncovering this information, Gather immediately notified the dealership’s management team and the woman was asked to rectify the discrepancies. Instead, she “went dark” and the sale did not progress.

Two days later on May 8th, the same woman visited another Gather dealership looking to purchase a BMW M4 with a $94,100 purchase price. This time, she presented a driver’s license for an entirely different person with seemingly valid insurance cards, and was approved for a captive finance loan. When the woman went through the Gather process, Gather uncovered for a second time that both the license and insurance cards were fake. Biometric data analysis also confirmed that the customer was the same human as the woman looking to purchase the Escalade. Gather worked with the dealership’s management team, presenting the documents and analyses that indicated fraud. This time, the dealership notified the police.

Under direction of the police, the dealership engaged in a sting operation to catch the fraudster. The car sales professional made arrangements with the woman to take delivery of the vehicle that evening. When the woman arrived, the police were waiting on the scene and apprehended her. Further investigation by the police revealed that the woman was part of a fraud ring. Gather also learned that others have suffered from multiple car thefts in the area; these dealers do not utilize Gather.

“I’ve literally never done this,” said Heath Strayhan, General Manager of Autobahn Fort Worth. “I’ve never had prior knowledge of fraud and had someone arrested in the middle of a deal. Man we are all sitting here stunned. None of us have ever caught someone proactively.”

The final case occurred on May 13th. A man visited a sister store to the Dallas-Fort Worth dealership interested in purchasing a luxury SUV with an MSRP of $111,055. When the customer went through the Gather process, Gather uncovered the insurance card presented was fake. A policy never existed for the customer. The dealership was notified and the man was denied the purchase.

In conclusion, fraudsters are becoming quite sophisticated in their ability to create driver’s licenses and insurance cards that pass the muster of traditional verification processes. Gather, on the other hand, has demonstrably shown to stop fraud in its tracks. 

With fraud cases like these on the rise in the Dallas-Fort Worth area, among others, dealers are encouraged to stay vigilant and take proactive measures to identify and prevent fraud in the dealership. 

For more information about these cases or to learn more about Gather, please call Gather’s CEO, Jim Maxfield, at (203) 249-9918 or email jim@gather.technology.