Pub. 3 2014 Issue 2

26 San Diego Dealer A s the U.S. economy has begun to recover from the Great Reces- sion, many dealerships have relaxed a little. Cash has begun flowing again, and it isn’t necessary — as it was for a while — to be quite so careful about spending. That’s good news, but there is a negative aspect: as dealerships relax, they become more susceptible to fraud. You already knowhowhard the economic downturnwas on dealerships, but now theU.S. love affair with cars and trucks has picked up again despite a weak economy and high unemployment. Why? No one knows for sure, but at least three factors have possibly contributed: pent-up demand from the years when so many people decided to drive their vehicles longer instead of replacing them; a continuation of extremely low interest rates, which makes more car available for less money than would otherwise be the case; and lending standards that encourage people to act. Whatever the reason, the fact is that ready cash attracts fraud. And right now, that is exactly what many dealerships have to offer. Unfortunately, it isn’t possible to eliminate the problem completely, but there are some steps that can be taken to reduce the amount of risk. Implementing some controls is far less costly than the alternative. By taking the right steps, you will be able to better protect your dealership, and you might also be able to prevent losing what could be a substantial amount of money. Fraud Protection for Dealers