Welcome to another edition of the Car Dealership Guy Industry Spotlight Podcast Recap newsletter—the key lessons from top operators, founders, and execs shaping the future of auto retail.
Today’s guests include Preston Stewart, National Variable Operations Director of Napleton Automotive Group, and Rudy Nieto, CEO of MavSign.
Together, they discuss how dealers can protect against sophisticated fraud while competing effectively in the remote delivery market.
Automotive fraud has evolved into a billion-dollar organized threat.
Criminal operations are now well-funded and sophisticated, utilizing AI and deepfake technology to exploit traditional verification weaknesses.
"They're not amateurs anymore, man. They're really not. They're well-organized. They're well-funded, you know, and they're using AI against us." — Preston
Industry losses jumped from $7.8 billion in 2024 to a projected $9 billion in 2025, making fraud prevention a critical operational priority.
Single-layer verification methods are completely inadequate today.
Traditional approaches like basic ID checks or notary services cannot withstand modern fraud techniques targeting remote transactions.
"The old days of one simple ID verification isn't enough anymore." — Preston
Dealers must implement multiple verification layers to protect against increasingly sophisticated criminal operations.
Physical presence verification remains irreplaceable against AI threats.
Despite advanced digital tools, having a trained professional physically present during transactions provides critical fraud detection capabilities.
"The fact that you can now instigate that automatic AI that goes and talks back to your customers...Well, you don't think that they're going to do that the other way around?...You have to have a platform and process with it. That's people layered on top of tech." — Preston
Deepfake technology makes remote-only verification vulnerable, requiring in-person validation as the final security layer.
Comprehensive verification systems catch massive fraud attempts annually.
Professional fraud prevention services intercept tens of millions in fraudulent transactions by combining technology with experienced human oversight.
"We catch in the act somewhere between 75 and 100 million a year, and we expect that to continue to go up." — Rudy
Simple deterrents like thumbprint requirements cause many fraudsters to abandon transactions immediately.
Presented by:
MavSign - The secure offsite closing platform for automotive dealers and lenders. With a nationwide network of certified signing agents, Mavsign helps retailers complete remote deliveries legally and compliantly, while eliminating fraud and simplifying the back-end process. Learn more @ mavsign.com
Franchise dealers can compete directly with national online retailers.
Proper fraud prevention protocols enable dealers to sell nationwide while maintaining security advantages over purely digital competitors.
"I don't see any reason why a car dealer can't go toe to toe with those folks...I'd rather buy from a person...than buy from the computer." — Rudy
Even major online retailers rely on physical identity verification at delivery, but dealers can provide more personalized service throughout the entire process.
Multiple verification layers must work together seamlessly.
Effective fraud prevention integrates biometric checks, address verification, employer confirmation, forensic ID analysis, and physical thumbprint collection.
"The problem with the way a lot of dealer tech stacks work is all those functions exist in separate places...and they don't talk to each other." — Rudy
Successful systems centralize all verification components rather than relying on disconnected processes across multiple platforms.
Limited lender acceptance requires strategic compliance planning.
Only a handful of major lenders currently accept off-site transactions, forcing dealers to navigate specific agreements and documentation requirements.
"There's only three major banks besides the captives that allow for offsite." — Rudy
Captive finance companies and luxury brands actively promote comprehensive verification services as safe harbor practices.
Service investment pays for itself through fraud prevention.
Professional verification services cost $200-250 per delivery but prevent average wholesale losses of $800 plus additional damages from fraudulent transactions.
"The average cost with all the pieces is somewhere between $200 and $250 per delivery...that can be passed on to the consumer." — Rudy
This investment protects dealer reputation and prevents costly chargebacks while enabling nationwide sales capabilities.
Pay plan accountability drives consistent fraud prevention compliance.
Groups achieving the highest success rates tie fraud losses directly to individual compensation, creating personal investment in following verification protocols.
"The dealerships that tie fraud to a pay plan to say, ‘Hey, if you don't follow the process and you lose a car...It's not just the chargeback or the profit. It's the chargeback or the full loss.’ I do see that work." —Rudy
Top-down enforcement ensures fraud prevention becomes a compliance requirement rather than an optional convenience feature.
Reputational damage from fraud extends far beyond financial losses.
The impact on dealer credibility and customer trust creates lasting consequences that exceed the immediate monetary costs of fraudulent transactions.
"I say probably to me, it's the reputational damage that can be had from fraud. Just again. As a consumer, I've been somebody who's experienced having your information taken. It's terrible." — Preston
Protecting customer information and preventing identity theft becomes a moral obligation that affects the entire dealership's reputation in the community.
