700Credit :The Benchmark in Auto Document Authentication

Today, the automotive retail industry is at a critical crossroads with rising driver's license fraud, tightened regulatory compliance, and the growing need to secure sensitive customer data. Dealers require the right tools for effective driver’s license scanning to protect their customers and prevent costly scams.

These challenges are being addressed by 700Credit, a trusted provider of driver’s license authentication platforms for automotive, RV, powersports, and marine dealers across the U.S., serving over 22,000 dealerships. As the largest provider of credit reports, compliance solutions, identity theft protection, and both soft and hard credit pulls, 700Credit’s core products have been the foundation of its business. However, with its new driver’s license authentication solutions, QuickScan, a mobile scanner, and ID Drive, a physical scanner, the company is focused on increasing its penetration within its existing customer base and reaching as many dealerships as possible.

In addition to its solutions, 700Credit prioritizes client education on industry trends and challenges. For example, it recently hosted an educational webinar on synthetic fraud in partnership with the three major credit bureaus and their fraud experts. Over 1,000 dealers participated in the panel discussion, where experts emphasized the importance of implementing a “know your customer” defense and integrating driver’s license authentication early in the sales funnel.

A Closer Look at ID Drive and QuickScan

ID Drive from 700Credit is the most comprehensive driver’s license scanning solution available today for automotive dealers. It integrates the company’s prescreening and prequalification tools with advanced identity verification features, including Red Flag detection, synthetic fraud detection, and DMV validation. This enables dealers to access valuable credit data while protecting themselves from sophisticated fraud early in the sales process.

Many dealerships still handle driver’s licenses manually—making photocopies, storing them in physical deal jackets, or asking consumers to send them via email or text. These outdated methods create a security nightmare, as safeguarding this data across multiple touchpoints becomes nearly impossible without a streamlined policy.

This is where QuickScan comes in. Designed to simplify identity verification, QuickScan replaces manual, high-risk methods with a secure, automated system. It is particularly ideal for remote transactions, such as vehicle deliveries, as it eliminates the need for dealership personnel to handle physical licenses.

How does it work? A secure link is sent to the consumer’s phone, allowing them to upload a front and back image of their driver’s license, scan the barcode, and complete the process with a selfie. This information is securely stored in the dealership’s electronic deal jacket, accessible only to authorized personnel.

Together, ID Drive and QuickScan empower dealerships to operate with confidence, securely manage sensitive customer data, and meet regulatory standards.

Advanced Authentication Process

Once uploaded, 700Credit extracts consumer data from the front of the driver’s license and compares it to the barcode scan on the back to ensure a match. The license is then validated against the state’s specifications, with 28 to 38 verification checks depending on the state.

Next, the selfie is analyzed using liveness detection to confirm it’s a real person and not a fraudulent attempt. The selfie is biometrically compared to the license photo for added security.

Once the document is validated, 700Credit proceeds to verify the identity. The process includes:
1. Third-party database checks to confirm the name and address exist in public records.
2. Synthetic fraud checks by analyzing the credit profile for suspicious activity.
3. Device identification and an Office of Foreign Assets Control (OFAC) check, now often required before test drives.
4. DMV validation across 43 states to ensure a 100 percent match of the name, date of birth, driver’s license number, and address for ultimate accuracy.

700Credit’s identity verification process is overseen by five key partners. One partner manages state validations to stay current with changes in driver’s license formats. Another focuses on biometric authentication, using five points of comparison to match selfies with license photos. A third partner cross-references public records for name and address validation.

Synthetic Fraud Detection Process

Synthetic fraud often involves creating false identities using valid details like a name, address, and date of birth. Fraudsters exploit the system by filing fake credit applications. When credit bureaus cannot verify the identity, they generate new credit files, enabling synthetic identities to exist. Fraudsters may then pay legitimate consumers to add the synthetic identity as an authorized user on credit cards. This allows the fake identity to inherit credit history and inflate its creditworthiness.

700Credit’s fraud detection models analyze various factors, including third-party account access, sudden credit line increases, and debt patterns, to identify and flag suspicious activity effectively.

Over the years, 700Credit has supported dealerships facing significant losses due to synthetic identity fraud, with some losing multiple vehicles monthly—especially during remote transactions. 700Credit’s solutions have been instrumental in protecting dealers’ remote delivery processes.

To combat fraud earlier in the sales funnel, some dealerships now implement systems where customer information enters the CRM only after validating the driver’s license. This process begins as early as the test drive stage, ensuring only valid licenses are processed. 700Credit also automates the insertion of validated license data into deal jackets, streamlining operations.

“As we set our sights on the future, we will integrate into as many DMS electronic deal jackets as possible. We’re focused on expanding our reach, supporting dealers, and making sure our products get into the hands of as many dealerships as we can,” says Hill.