Modernizing Canadian Automotive Retail and Finance Sectors
As fraud, regulatory scrutiny, and consumer expectations evolve, Canadian Automotive Retail and Finance Sectors are under pressure to modernize identity verification (IDV) practices. This report summarizes insights from DIACC’s Spring 2025 industry forum, where finance leaders, dealership executives, and regulators explored the impact of digital IDV solutions on reducing fraud, improving operational efficiency, and fostering consumer trust.
The Strategic Value of ID Verification
Fraud prevention is no longer a siloed compliance function; it is a frontline business priority. In a sector responsible for billions in consumer credit, the cost of poor identity verification practices is measured in lost revenue, brand damage, regulatory exposure, and consumer distrust.
The Real Cost of Weak ID Verification
The report shows that despite digital progress, the auto sector still faces major gaps, with analog identity checks driving friction and rising fraud losses. Outdated tools, inconsistent practices, and weak system integration reduce risk mitigation, while strong ID verification must be balanced with a smooth customer experience. Clear communication helps, but compliance gaps and cultural barriers persist, prompting some dealers to hold staff accountable for fraud-related losses.
The Opportunity
The Pan-Canadian Trust Framework (PCTF), developed by DIACC, offers an actionable standard to harmonize identity verification across sectors. Certification helps organizations vet vendors and demonstrate compliance.
Download the report here.
2025-Spring-Plenary-Client-IDV-Forum-Summary_ENG
