As many dealers are aware, there has been a rash of thefts of high-dollar vehicles from various auction platforms, and no one group has been immune. The thieves are extremely crafty, to the extent they are able to fool auction security, dealer security, and swindle innocent transporters. We will not rehash the past here, but will discuss what ACV Auctions is doing to prevent this expensive and damaging situation for it's its customers.
I had the pleasure of speaking with Ross Yudkin, VP of Transport with ACV Auctions late last month, and he discussed ACV's new enhanced security for their transport pickups. The new security works like this:
Each completed digital auction on ACV's platform has a unique QR code on the release slip, which the seller must scan. The seller is provided with a "secret phrase", which the transporter does not know.
Two-Factor authentication is then required; the transporter must show the release (pick-up slip) to the seller, who then must scan the QR code on the pick-up slip.
The seller then confirms the "secret phrase" once the QR code is scanned and he receives a SMS text - this phrase must match the one on the seller's bill of sale.
This two-factor authentication (which may be the death of all of us), does provide a much-needed layer of protection for both buyer and seller. The likelihood of a transporter getting a "hacked" pickup slip from a buyer/transporter is low; additionally, Ross tells me that in the event a sale is voided or risky behavior is reported, the QR code itself can be voided and reissued electronically and the QR code would not validate upon scan. This further helps to minimize the possibility of a vehicle being picked up (even by mistake).
One thing I like about the new system is that in the unlikely event of a theft occurring, "blame" can be assigned to the party that broke the process. If the seller releases a vehicle and did not scan the pick-up slip, that is noted and at that point, the seller has a stolen unit, NOT the buyer. The chances that a rogue transporter or bad actor could steal a buyer's pick-up slip with the correct QR code is minimal, as well.
ACV Auctions should be applauded for developing this technology to protect its buyers and sellers (and the company). Obviously, bad actors are everywhere, and stealing $250K vehicles is lucrative. Thieves will eventually learn how to beat most any system/process, but ACV has done a good job of slowing them down.
President/Founder | AAR
