GNYADA October 2018 Newsletter

NADA Director’s Column Dealers from Around the Country Attend the NADA Washington Conference by Bob Vail, Vail Buick GMC, NADA Director Metro New York

vehicle leases) and dealers who offer business credit where a reasonably foreseeable risk of identity theft exists to maintain a written Identity Theft Prevention Program that (i) identifies relevant red flags that indicate the possible existence of identity theft, (ii) contains reasonable procedures to detect and respond to those red flags, and (iii) is updated periodically to reflect new identity theft risks. After the first alert, a GNYADA member contacted the Association with concerns about a transaction similar to the ones described in the alert. GNYADA contact- ed Sgt. Blair, who spoke to the dealer directly and looked into the transaction, which turned out to be legitimate. Sgt. Blair was happy to help and encour- ages dealers not to hesitate to reach out if any transaction seems suspicious. are currently facing. The legislators were familiar with GNYADA’s reputation and the contributions dealers make to their communities. We gave each of them copies of the latest Economic Impact report, information about the educational programs offered at the CAET, and offered to provide any additional information they required. GNYADA would like to thank our Board Members who came to Washington to attend several NADA legislative briefings and spent hours on Capitol Hill meeting with Congressional representatives.

This is an elaborate scheme that can be stopped if dealerships conduct a thorough examination of online loan applications and related paperwork and institute a waiting period before shipping the vehicle. In every incident, there have been several red flags that the dealership should have caught prior to shipping the vehicle. If you have questions or concerns, contact: Sgt. Keith A. Blair, Commanding Officer, Chicago Major Auto Theft, Investigative Unit, Central Investigations Division - Unit #606, Chicago Police Department, 3151 W. Harrison St., Chicago, IL 60612 or keith.blair@chicagopolice.org . NADA Note: The Federal Trade Commission’s Red Flags Rule requires dealers who offer or maintain consumer credit (including retail installment sale contracts and President Mark Schienberg; Board Members Brian Miller, Jack Weidinger, Oliver Brodlieb, Mark Lacher, Jordan Daiagi-Harary, Lou Giordano; and NextGen Committee member Greg Vail. Our schedule included meetings with Senate Democratic Leader Charles Schumer; Representatives Lee Zeldin, Grace Meng, Tom Suozzi, Adriano Espillat, and Dan Donovan; and staff for Representatives Kathleen Rice and Peter King. Dealers shared their experience conducting business in their respective regions and discussed with the legislators the issues they

Earlier this summer, the Association notified members about an NADA alert regarding vehicles being fraudulently purchased online and shipped to the Chicagoland area. NADA has issued a second alert, at the request of the Chicago Police Department, that this scheme is ongoing. Criminals will select a car, usually valued at $50,000 or more, via internet search. They will fill out a credit application and paperwork online or send them via FedEx after they are sent to an address in the Chicago area. The offenders create a phony email account in the victim's name as well as a fake driver’s license with the victim’s information; they use Google Voice or other applications with untraceable phone numbers. The offenders often seek to arrange their own shipping. The annual NADAWashington Conference gives franchised new car dealers and association executives from around the country the opportunity to meet with their Congressional representatives and discuss pressing national issues. This year’s key issues include the President's proposed tariffs, the restriction on selling used cars with open recalls, and ensuring legislative regulating self-driving cars does not infringe on state franchise laws. On behalf of GNYADA, I was joined at the conference by GNYADA Chairman Lee Certilman;

9 Chicago-Area Vehicle Fraud Scheme Continues

Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • October 2018 5

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