DealerTrack Adds Red Flags Reporting to Its Compliance Solution
DealerTrack Inc., a provider of on-demand software and data solutions, added red flags reporting to its DealerTrack Compliance Solution to help dealers better track their identity theft prevention programs and to more effectively monitor dealership activity.
LAKE SUCCESS, N.Y. — DealerTrack Inc., a provider of on-demand software and data solutions, added red flags reporting to its DealerTrack Compliance Solution to help dealers better track their identity theft prevention programs and to more effectively monitor dealership activity.
The Federal Trade Commission (FTC)’s Red Flags Rule stipulates that dealers need to verify the identity of each customer and be prepared to document their compliance with the rule. For each covered transaction, documenting red flags raised and how they are addressed can help demonstrate a consistent application of red flags policy. In addition, dealers must regularly monitor their red flags activity so they can update identity theft prevention programs accordingly.
Using DealerTrack’s red flags reporting, dealers can do both, since the solution enables them to create a range of reports, including:
- An electronic customer investigation report for users to document every red flag that is found, electronically or manually, on each deal.
- A monthly summary of all red flags activity – average identity scores, reason codes, user statistics and more.
- A rolling 12-month summary to help dealers identify trends in activity and evaluate possible updates to their programs.
The new capabilities allow a dealer to assess how each of their employees is verifying and validating customers’ identification on all deals. These extensive reports are an important tool to not only spot trends in which red flags are being triggered and how they are being resolved, but also to help determine whether training programs should be changed to make sure employees and the dealership remain in compliance.
“DealerTrack is the only provider in the industry offering such a comprehensive suite of compliance tools,” said Raj Sundaram, senior vice president, solution and services group at DealerTrack. “This new reporting functionality takes dealers beyond just identifying red flags – it gives them an audit trail to prove they’re in compliance.”
“DealerTrack’s Red Flags Reporting will help us manage our identity theft prevention program more systematically,” said David Dillon, president and general manager of First Team Auto Mall in Roanoke, Va. “The new reports will not only make it easier to document our red flags activity, but also to analyze and update the program as needed.”
The FTC is scheduled to begin enforcement of the Red Flags Rule on Nov. 1, 2009. All subscribers of the DealerTrack Compliance Solution are receiving this reporting upgrade with no additional charge.
More F&I

Integrating Nontraditional F&I Products
The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.
Read More →
Trust Is Personal
Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.
Read More →
Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Own Your Outcome: F&I in the Digital Customer Journey
Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →