Imagine not picking up the phone because you know your auto dealership attorney is calling!
Fearing it might be another discussion about a potential fraudulent claim.
Sounds familiar, right?
This is very common for some auto dealers across Canada.
The Canadian Auto Dealers Association (CADA) reports that automobile dealers sold a whopping 1,638,398 new vehicles and served 8238 repair orders!
All these vehicles were sold across 3430 Canadian automotive dealerships!
When it comes to fraudulent claims, auto dealership security becomes very important.
We have a full section explaining how auto dealers lose hundreds of dollars on these claims later on.
No matter what the fraudulent claims are, it’s the dealership’s responsibility to stay ahead of the game! After reading this blog, you will have a strong idea of how video monitoring helps automotive dealership avoid fraudulent claims!
So let’s dive straight in!
Identifying fraudulent claims at car dealerships:
- Disputes related to fraudulent claims concerning vehicle damage.
- Disputes arising from unauthorized vehicle usage.
- Concerns regarding the quality of parts or repairs.
- Disputes involving stolen items.
- Incidents of injuries that occur within the dealership premises.
Disputes related to fraudulent claims concerning vehicle damage:
False claims may arise when clients assert that their vehicles were damaged while in the dealership’s possession, either during maintenance or while parked on the premises.
Disputes arising from unauthorized vehicle usage:
False claims may be made by clients who allege that dealership staff misused their vehicles without permission when the vehicle came for repair work.
Concerns regarding the quality of parts or repairs:
Clients might dispute the quality of parts used or the effectiveness of repairs performed on their vehicles.
Disputes involving stolen items:
False claims may arise from clients alleging theft of belongings during maintenance. They may even assert mishandling of their vehicles, or disputing charges for services not performed.
Incidents of injuries that occur within the dealership premises:
In cases where clients suffer injuries on the dealership property, such as slipping accidents or tripping over.
Ready to boost your dealership's security?
How does video monitoring helps automotive dealership avoid fraudulent claims?
- Deterrence through surveillance cameras
- Documentation tool
- Employee accountability
- Falsified injury claims at a dealership
Deterrence through surveillance:
One of the tried and tested ways of avoiding fraudulent claims is deterring through CCTV cameras. When the fraudsters know that they are being watched they will think twice before staging accidents or making false claims!
These fraudulent incidents are typically staged in areas with limited surveillance, and fraudsters may later target the dealership, claiming it is responsible for the damages.
Both the internal employees and potential customers perceive the lack of oversight and remote video monitoring closes this gap by providing constant monitoring.
This makes it crucial for auto dealerships to implement real-time video monitoring systems strategically. Video surveillance serves as a deterrent, capturing clear evidence of staged accidents and providing a means to refute false claims.
Documentation tool:
When the security cameras are monitoring 24/7 these recordings become powerful accountability tools. People who are planning false claims are discouraged because they are aware that CCTV footage will disprove any false accusations.
The 2020 Global Fraud Study by the Association of Certified Fraud Examiners (ACFE) reveals that, on average, a fraud case goes on for 14 months and incurs a monthly cost of $8,300 to businesses.
Remote video monitoring provides a strong foundation for evidence collection, sparing you from these significant financial losses. Without video surveillance evidence, resolving fraudulent claims through legal proceedings will take an indefinite amount of time.
License plates, photos, and videos of the participants can be obtained through high-quality surveillance and advanced video analytics.
Additionally, this will give an accurate picture of the circumstances to prove the facts and reveal any attempts at fraud.
Employee accountability:
Video monitoring helps automotive dealership extend surveillance to various areas within the dealership, including service bays and repair areas.
This ensures that employees adhere to proper procedures and guidelines, enhancing operational efficiency and customer trust.
In case of a dispute or a claim related to the service provided, video evidence can be used to verify the actions taken by dealership staff.
For instance, imagine a scenario where a car owner visits an auto dealership, alleging that the staff caused additional damage during routine maintenance, failed to refill the oil, or removed valuables from the car, thereby demanding compensation.
However, upon examining the surveillance footage, it becomes clear that the dealership staff adhered strictly to the prescribed service procedures and guidelines.
There was no indication of mishandling or negligence. Video monitoring recordings have just saved you some money and lost time!
Falsified injury claims at car dealerships:
It may come as a surprise, but dealerships can indeed be held liable for incidents such as someone tripping or falling on their premises. Factors like uneven surfaces, changing weather conditions, or high foot traffic at the dealership could all contribute to such accidents.
A woman was awarded $2.9 million in compensation for a personal injury incurred at a well-known car dealership in the USA.
Installing cameras in important dealership locations, such as parking lots, showroom display floors, service stations, and places where customers interact, is a smart idea if you do not want anybody slipping on your floors.
Video monitoring systems, such as surveillance cameras installed in parking lots or around the dealership premises, can capture footage of accidents or incidents involving vehicles or individuals.
This footage can serve as valuable evidence to verify the authenticity of a claim. It can help determine the actual circumstances of an incident and identify whether it aligns with the reported details.
Conclusion:
In summary, video monitoring is a crucial tool for Canadian automotive dealerships to combat fraudulent claims. It deters potential fraudsters, serves as a documentation tool, and ensures employee accountability.
The system also aids in recording the condition of vehicles and verifying the legitimacy of injury claims.
Contact us for a customized solution for your automotive dealership to avoid fraudulent claims and protect your business.
