LAKE SUCCESS, N.Y. — Software provider DealerTrack Inc. announced Tuesday the addition of “ID Alerts,” a free enhancement to its credit application network that will help dealers reduce the risk of identity theft and fraud by flagging abnormal patterns in credit applications.

The new “ID Alerts” complement DealerTrack’s identity verification solution, which has 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 e-mail 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,” Sundaram said.