DealerTrack, Inc., a subsidiary of DealerTrack Holdings, Inc. (Nasdaq: TRAK), a leading provider of on-demand software and data solutions for the U.S. automotive retail industry, announced the addition of a free enhancement to its credit application network that will help dealers strengthen their compliance programs and reduce the risk of identity theft and fraud by flagging abnormal patterns in credit applications at their stores. The new "ID Alerts" complement DealerTrack's industry-leading identity verification solution, which has now been used more than 10 million times by dealers, to check customers' identities, since its introduction in 2006
"With ID Alerts, dealers submitting credit applications on DealerTrack will have an additional safeguard to help detect unusual credit application behavior that could be indicative of internal or external fraud," said Raj Sundaram, senior vice president, solution and services group at DealerTrack. "This new functionality will help dealers reduce their risk of selling cars to identity thieves, which can be extremely costly, and should play an important role in their Red Flags identity theft prevention programs."
With each submission of a credit application through the DealerTrack network, ID Alerts will automatically compare the new data with that on all other applications submitted by the same dealer over the prior 60 days. An ID alert may be triggered by any of several possible anomalies in the customer's credit application data.
If any alerts are triggered, the dealer will have an opportunity to identify and resolve any issues before actually submitting the credit application to a lender. Users will be able to see which criteria triggered the alert and which prior applications were involved, enabling them to follow up and clear the alert. Dealers can also receive a daily summary of ID alerts via email and download reports of alerts from previous periods.
For dealers who subscribe to the DealerTrack Compliance Solution, the ID Alerts functionality will be fully integrated. Any ID alerts will be automatically attached to the deal's electronic deal jacket with full audit trail and documentation.
"This innovative new feature, a first in the industry, is another illustration of DealerTrack's commitment to providing a complete and seamless solution that helps protect dealers and supports their compliance with the federal and state regulations affecting their business," said Mr. Sundaram.
DealerTrack offers the industry's most comprehensive suite of compliance tools on one fully integrated and secure platform. From credit application submission to the Red Flags identity check, menu presentation and contract processing, DealerTrack provides the most effective electronic solutions to protect dealers and their customers.
DealerTrack subscription and other transaction-based products integrate with the credit application process and provide an end-to-end dealership technology solution. In addition to its market-leading credit network, the on-demand DealerTrack DMS (dealer management system) and Inventory Optimization Solution are also category leaders.
About DealerTrack (www.dealertrack.com)
DealerTrack's high-value software solutions enhance efficiency and profitability for all major segments of the automotive retail industry, including dealers, lenders, OEMs, agents and aftermarket providers. DealerTrack operates the industry's largest online credit application network, connecting approximately 19,000 dealers with over 750 financing sources. Our solution set for dealers is the industry's most comprehensive. Our Dealer Management System (DMS) enables dealers to effectively manage data and operations from a system with an open integration interface. With DealerTrack Inventory Optimization, dealers get better data along with the tools to make smarter, more profitable inventory decisions. Our Sales and F&I solution enables dealers to streamline the entire sales process, quickly structuring all types of deals from a single integrated platform. DealerTrack's Compliance solution helps dealers meet legal and regulatory requirements and protect their hard-earned assets. DealerTrack's family of companies also includes data and consulting services providers, ALG (Automotive Lease Guide) and Chrome Systems. For more information, visit www.dealertrack.com.
Safe Harbor for Forward-Looking and Cautionary Statements
Statements in this press release regarding the benefits of DealerTrack's ID Alerts, including its benefits to dealers, and all other statements in this release other than the recitation of historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of DealerTrack to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.
Factors that might cause such a difference include the proper use of the product by dealers, the accuracy of the algorithms used in the ID Alerts product, and other risks listed in our reports filed with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2008. These filings can be found on DealerTrack's website at www.dealertrack.com and the SEC's website at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and DealerTrack disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.