Midwest-based Zeigler Auto Group had a serious theft problem across its 40+ dealership locations.
Over the course of six months, no less than 60 vehicles were stolen.
So, CEO Aaron Zeigler called Karianne Thomas, a retired police chief with 27 years in law enforcement for help.
What they’re saying: “I knew how to drive a car and put gas in it and suddenly entered the car dealership world. But it's more about the strategy, right? It's knowing the mindset of the bad guys and how they think,” Thomas, now director of security, told Daily Dealer Live hosts Sam D’Arc and Uli de’ Martino.
Since then, lot theft numbers have dropped. Zeigler only had 10 vehicles stolen last year and eight of them were recovered.
But today, the threat changed.
"I was hired for lot theft and now our biggest problem is fraud," Thomas said. “Not a day goes by that I don't see a fraud trying to come through Zeigler Auto Group.”
What shifted: The post-COVID money dried up and professional fraudsters have changed their tactics.
In addition to traditional identity theft, criminals are building synthetic identities from scratch that combine real personal data with fake data.
And Thomas also sees a fair bit of artificial paydowns, where someone creates a false payment history and then trades in the vehicle.
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The good news: Many of these criminals follow similar patterns that can be spotted. According to Thomas, most of the time they walk in on a Friday night when some lenders might be auto-approving deals.
They often rush the F&I manager through the process while trying to keep them distracted, and then push for immediate delivery.
By Monday or Tuesday when the lender has questions, the person is gone. The car's been VIN swapped and it has a new title.
And Thomas trains stores on spotting these red flags. ID scanners and verification systems only catch what they're programmed to catch. So, the salesperson or F&I manager sitting across from the customer, must pick up what the tools miss.
Bottom line: The fraudsters are professionals. They move fast, and the tools dealers buy won't catch everything. It takes people who trust their gut and know when to pump the brakes.
Thomas’ advice: Join state dealer associations, connect with local auto theft teams, and build relationships with neighboring stores. Otherwise, the exposure to risk will only increase.
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