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Whilst identity fraud continues to increase and cause concern to the leasing companies that often pay out tens of thousands of pounds for cars after receiving just a few signed documents and an advanced rental cheque, often for less than £1,000, motor finance fraud is relatively low compared to say credit card fraud or online purchase fraud. But there has been a steady increase in some more sophisticated organised fraud that results in professionals having their identities used in order to acquire presige cars. Some fraudsters have acquired sufficient information from web sites for solicitors and accountants to enable them to make a finance application. As established professional practices are not looked at anywhere near as closely as say a small transport or manufacturing firm it can be relatively easy to comit a fraud without the knowledge of the individual until long after the fraud has been comitted. I am still registered as an expert witness with the police to advise on fraud cases but very few end up in court. As an example in one major case of obvious fraud the identity was stolen of a long established business after a cleaner was installed who took bank books, headed paper and records of directors. A credit application was made ‘by the company‘ for a new director, who was to work out of a ficticious new office, documents were sent to the new office, signed and returned along with an advanced rental cheque (out of a stolen cheque book) ready for delivery of a new 6 series BMW. I was not happy that everything, whilst quite plausable, was transacted out of the spur office, so I sent file copies of the agreement for the attention of the Managing Director along with details of the delivery address. A panic phonecall led to the police being involved but as the car had not been delivered it was their opinion that technically no theft had taken place and there was insufficient evidence to make a prosecution stick. As the funder was so concerned about his reputation nothing was done nor was it publicised to warn others so hence the reason why few are ever prosecuted. Other recent frauds include change of address notices being sent to Companies House and applications being made 3 or more months later with documents being sent to a pick up address but more worrying is the unknown volumes of identity fraud perpetrated by online brokers who advertise car lease rates very cheaply. Naive applicants provide everything that a fraudster could want in order to steal the identity of the business and officers including details of partners/directors even down to annual salary, previous addresses and dates of birth. Having acquired this information they either propose for finance, possibly at a true rate to test the credit worthiness of the business/officers, then not advise the customer that he has been successful or even supply the car at little or no profit as the identity of a substantial company can be worth much more than a couple of hundred pounds in commissions. You have a responsibility to make sure that you know who you are dealing with when taking the dangerous option of dealing online or it could end in tears! By Graham Hill