Let’s not sugarcoat it… fraud is on the rise in the UK motor trade. If you work in a dealership or broker finance, you’ve probably seen or heard about it firsthand. Fake IDs, false payslips, cloned cars, finance chargeback scams, the tactics are getting smarter, faster, and harder to spot.
And the numbers back it up.
According to a recent survey, one in five UK car dealers has fallen victim to fraud in the past year, and a massive 79% say it’s a growing concern. It’s not just the occasional shady customer; it’s a wave of increasingly organised and tech-savvy attempts to exploit the motor trade.
But there’s good news: you can fight back.
At Marsh Finance, we work with dealerships and brokers across the UK, and we’ve seen just how disruptive fraud can be, not just financially, but reputationally. That’s why we invest heavily in both technology and people to help prevent it.
This blog gives you a clear, honest look at the growing threat of fraud, and, more importantly, what you can do to stay ahead of it.
👉 The Fraud Trends Dealers Can't Ignore
Let’s start with the types of fraud we’re seeing more of in the car finance world:
This includes everything from doctored payslips to forged driving licences. With AI image editing and PDF generation tools widely available online, fraudsters can now easily fake credibility.
This is where criminals combine real and fake information to create a convincing new identity, often clean enough to pass automated credit checks, especially at high-volume, fast-paced sites.
A customer pays for a vehicle using a credit card or finance deposit, takes the car, then disputes the transaction claiming fraud. This leaves the dealer out of pocket and with no car.
Stolen cars are given new, fake identities, often matching legitimate vehicles elsewhere, and sold on to unsuspecting dealers or finance companies.
In 2024 alone, UK Finance reported over £1.17 billion stolen through fraud across financial services and motor finance is a big target.
For dealerships, even a single case of fraud can cost thousands, not just in lost vehicles but also in unpaid loans, administrative costs, and legal recovery. Worse still, it damages customer trust and can cause major compliance headaches.
Here’s the practical stuff, the things your dealership can start doing today to reduce the risk of fraud.
✅ 1. Train Your Frontline Staff
Your team is your first line of defence. Make sure they know how to:
Regular fraud awareness training (quarterly, ideally) keeps everyone sharp.
✅ 2. Verify Documentation the Smart Way
Don’t just glance at payslips and bank statements. Use digital income verification tools when possible or request open banking links.
If you rely on PDFs emailed from a personal Gmail account without following up, you’re already taking a risk.
✅ 3. Don’t Rely Solely on Automation
Speed is great, but not at the cost of safety. Fraudsters know how to trick automated systems, especially ones that don’t manually review outliers or inconsistencies.
That’s why working with a lender like Marsh Finance gives you an edge. When a deal looks “off,” we don’t just decline it and move on. We look again, manually, with experienced underwriters trained to spot red flags.
✅ 4. Be Careful With Deposits
Think carefully before accepting high-value deposits via credit cards, especially for home deliveries. These are a common gateway for chargeback fraud.
Instead, confirm identity and address before handing over any keys, even for click-and-collect.
✅ 5. Use Open Banking Wherever You Can
Open Banking allows real-time access to verified income, spending, and account details directly from the customer’s bank account (with consent). It’s far harder to fake, and much easier to review quickly.
Marsh Finance uses Open Banking as standard on all applications. It helps protect you, your customer, and the whole finance journey.
We take fraud seriously, not just for our own business, but to protect our dealer and broker partners across the UK. Here’s what we bring to the table:
In short: we’re not here to say “computer says no.” We’re here to work with you to help you spot fraud before it costs you a sale or your stock.
In 2025, trust matters more than ever, both for your customers and your finance partners.
The dealers and brokers that stay vigilant, invest in fraud prevention, and work with lenders who care about doing the right thing? They’ll win. Not just the sale, but the long-term loyalty of customers and partners alike.
Ready to work with a finance partner who’s got your back in fraud prevention and beyond?
Let’s talk. We’d love to show you how Marsh Finance can help you protect your business while saying yes to more of the right customers.