According to the Red Flag Rule, under the Fair and Accurate Credit Transactions Act (FACTA), all dealerships, banks, credit unions, and virtually every company that holds any customer accounts, are required to develop and employ an Identity Theft Prevention Program. According to the Federal Trade Commission, “The Program must include reasonable policies and procedures for detecting, preventing, and mitigating identity theft.” The customer’s identity must also be verified for every purchase transaction.
Fortunately, our I.D. TheftWiseSM Protection Program along with our ID Verification System fits the bill perfectly.
Our ID Verification system involves entering the customer’s information into our website, http://wisescanid.com/. The customer’s identity is authenticated through over multiple databases in under two seconds. Scans are also made of the National Do-Not-Call Registry and the United States Patriot Act (OFAC)
Five “Challenge Questions” are displayed and must be answered correctly by the customer. All scans, ID authenticity grades, and challenge questions are archived in compliance with the Red Flag Rule.
Compliance Website Subscribers $1.99/scan
Non-Subscribers $2.49/scan
(prices do not include set up fee)
The dealership’s process:
1. Before submitting a deal to a lender, the F&I representative types in customer information and clicks “Submit”.
2. A report is received within two seconds, displaying all data scan results. The F&I representative asks the customer the five displayed challenge questions. Based on these results, the dealership makes the decision to proceed with the deal or to decline it.
3. The F&I representative then prints a copy and places it in the customer folder.
All reports are immediately archived on behalf of the dealer, thus complying with Red Flag regulations.
Samples of data sources searched