Best practice fraud prevention guidelines for your car subscription service
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Best practice fraud prevention guidelines for your car subscription service

Michael Higgins
November 10, 2021

The Loopit platform implements best-in-class customer assessment and fraud prevention measures, and it is important to pair this with robust fraud prevention practices within your business to help you scale your business confidently.

Here are our top five prevention tips to ensure your business is safe from any potential fraudulent behaviour.

1. Only allow the primary subscriber to collect the vehicle

You should only allow the primary subscriber to collect the vehicle when activating a new subscription for the first time. If the customer requests that a friend or family member collect the vehicle on their behalf—even if that person is listed as an additional driver—this may be a sign of fraud.

2. Ensure that you sight identification and confirm it matches the subscriber

Always ask to see physical identification at the time of handover, and take a moment to inspect their ID to ensure it is genuine and matches the subscriber. Loopit recommends against accepting digital copies of identification, as this can make it easier to disguise fraudulent behaviour. Instead, as to see a verifiable form of digital identification such as a digital drivers licence.

3. Ask to sight the payment method used to create the subscription

Always ask to sight the physical credit or debit card used to create the subscription, and ensure the details match the payment method on the subscription. You should always insist on a payment method in the name of the primary subscriber. Even if the payment method is genuine, you will have no recourse to contest a chargeback where the name on the payment method does not match the name on the subscription agreement.

4. If in doubt, request additional documentation

If you suspect a subscriber may be fraudulent, you should also request additional documentation to verify their circumstances. A water, electricity, phone or internet bill can be used to establish proof of address, while other documentation such as a medicare card or passport can assist to confirm identity.

5. Contact employer and next of kin

Once a subscription agreement has been completed, it is good practice to contact the supplied employer and next of kin details to ensure these details are valid, and contact them if required. Performing an ABN lookup can also confirm that an employer's details are accurate. Where possible, contact a publicly available phone number to confirm employer details.

About the author
Michael is the co-founder and managing director at Loopit, a SaaS platform specialising in new mobility initiatives such as car subscription, rideshare and digital rental solutions. When he’s not launching new businesses, Michael enjoys motorsports, racing cars himself as well as boating.
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