Identity theft is a common crime in the United States. In 2023, more than 1 million reports of identity theft were made. Just as someone can steal an individual’s identity, dealers can have their identity stolen as well. However, Big Valley Auto Auction has a process in place to protect dealers from this situation.
What is an Example of Dealer Fraud?
An example of dealer fraud is when an individual enters an auto auction with another dealer’s information, buys vehicles, and doesn’t pay. This leads to issues that can harm the reputation of the actual dealer and potentially cause them to pay for vehicles they didn’t intend to purchase.
How Does Big Valley Auto Auction Prevent Dealer Fraud?
We use a verification process to make sure our representatives are legitimate. 4 steps we take are:
- Confirm personal information
- Check KO Book
- Additional research
- Call the business owner
Confirm Personal Information
Just like any other business, Big Valley Auto Auction needs to confirm our dealers’ identity. Things we check include:
- ID, passport, or visa
- Dealer license
- AuctionACCESS account
- Social security number
- Hacienda (for Mexico dealers)
Check KO Book
KO Book is considered “Auction jail”, meaning any dealer whose name is listed cannot attend an auto auction until they are cleared. KO Book is updated every day, so our dealer registration specialist checks KO Book daily. For more information, you can click the button below.
Extensive Research
We research every individual that registers with us to verify their identity and the legitimacy of their business. Some steps we take include:
- Searching the business online.
- Ensuring everyone is registered with AuctionACCESS.
Call the Business Owner
We call the business to verify the individual requesting to register is, in fact, an authorized representative and okay to register the business with our auction.
What Systems Do Big Valley Auto Auction Use in Order to Track Fraud?
There are 2 systems we use in order to ensure all our dealers are legitimate:
- KO Book
- AuctionACCESS
As mentioned earlier, KO Book is a list of dealers who are not allowed to attend auto auctions, so we check to make sure none of the dealers trying to enter are listed.
AuctionACCESS is a dealer verification system for North America’s wholesale auto auction industry. It’s a dealer’s gateway to physical or online wholesale auto auctions. AuctionACCESS also flags dealers who are in KO Book. Those flags on AuctionACCESS alert us, so we are aware of potential defaults.
Is Big Valley Auto Auction Effective in Preventing Dealer Fraud?
We’ve had this identity verification process in place since the beginning, and consistently update it as time goes on. Fortunately, this process has been successful and we haven’t experienced any fraud. We understand our procedures may be frustrating due to wait time, but it’s for the safety of you and all our dealers.
If you’re a dealer looking to buy or sell inventory, click the button below to speak with our dealer registration specialist to get you registered with Big Valley Auto Auction.
Not ready to talk? That’s okay! First, learn more about what it’s like to buy and sell at Big Valley Auto Auction by clicking the image below:
