LAKE SUCCESS, N.Y. — DealerTrack customers now have access to Red Flags Reporting. The Red Flags Rules are expected to be enforced starting Nov. 1. 

The addition is designed to help dealers in providing an audit trail and ensuring employees are complying with the Red Flag Rules.

DealerTrack's Red Flags Reporting can allow dealers to assess how each of their employees is verifying and validating customers' identification on all deals, reporting trends in which Red Flags are being triggered, how they are being resolved, along with offering dealers a prompt to provide additional employee training if compliance issues are consistently raising concerns.

"DealerTrack is the only provider in the industry offering such a comprehensive suite of compliance tools," claimed Raj Sundaram, senior vice president of the 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," he explained.

The Red Flags Rule requires dealers to verify the identity of each customer and be prepared to document compliance. Additionally, for each transaction, documentation of any Red Flags can help to demonstrate consistent application of the policy. Ultimately, dealers must monitor their program regularly to allow for identity theft prevention updating.

The new reporting service offers dealers three ways to monitor their progress:

—The program provides 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 including 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.

"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," he praised.