Follow the Money to Find In-House, External Fraud

Aaron Jacoby 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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