From Detection to Prevention: Tools for Fighting Fraud

From Detection to Prevention: Tools for Fighting Fraud

As both regulatory and customer service organizations, DMVs need unique tools to prevent fraud—not just respond to it—while ensuring seamless service delivery. Get tips for fraud prevention—today and tomorrow.

  |    |  

If you wait until fraud occurs, it’s already too late. As fraudsters get more creative, government agencies must be proactive, not reactive, in verifying customers’ identities and protecting their data. And there’s no silver bullet, either—the strategy to fight fraud is just as complex as the crime itself, and it includes learning from the fraud you catch.

As both regulatory and customer service organizations, DMVs need unique tools to prevent fraud—not just respond to it—while ensuring seamless service delivery. Some of these tools might already be at your disposal, while others are still on the horizon.

Emerging Technologies to Plan For:

Mobile Driver Licenses (mDL): It’s difficult for the average person to validate a physical driver license just by looking at it. That’s where mDLs come in: storing a driver license on the individual’s personal device allows for more direct identity verification. Mobile IDs also give customers the option to selectively disclose their personal information—for example, an age-restricted website doesn’t need to know your address to verify your age.

E-titling: Many states have seen a surge in vehicle title fraud. By digitizing vehicle titles, registrations, and liens—and securing them with proper ID verification—agencies can boost public confidence and minimize the risks of loss, theft, and damage associated with paper records.

Tools at Your Fingertips:

Education: Agencies are doing an excellent job of using social media to warn customers about common scams such as spoof sites and phishing attacks to steal information. However, one of the most at-risk groups—senior citizens—may be less engaged on social media platforms. Be sure to amplify your fraud education messaging both online and offline to keep customers informed of the latest threats.

Online Services: System monitoring and analytics allow DMVs to quickly detect and predict suspicious activity and patterns in their online portals. For example, if a customer makes several attempts to renew a driver license at 2 a.m. from multiple IP addresses in different states, the system can flag the account and notify the agency. Alerting customers about changes or requests in their accounts is another way to get ahead of potential fraud.

Advanced Bot Detection: DMVs are increasingly targeted by bots and fraudsters originating from outside of North America. A secure online portal should employ advanced bot detection algorithms to further mitigate attempts by bad actors beyond IP address tracking. Minnesota Driver and Vehicle Services (DVS) tackled this problem by enabling a geofencing tool in their system, effectively blocking all traffic from foreign IP addresses. The effort earned DVS the 2023 AAMVA Fraud Prevention and Detection Award.

Federal Resources: Ensure your system has a real-time interface with programs like the National Motor Vehicle Title Information System, which protects consumers from fraud and keeps unsafe or stolen vehicles off the road.

Fast Enterprises has helped 100+ agencies worldwide enhance efficiencies and fortify their operations. To continue the conversation, contact me at FDean@FastCore.com or visit FastEnterprises.com.


Related Articles

Optimize workflows with thales kiosks

Bridging the Digital Divide: How to Serve Everyone, Everywhere

Is your modernization journey leaving any customers behind?

The Digital Title Network

Experience the benefits of digital titling & registration, as well as electronic lien systems and processing with minimal change management.