What identification am I legally required to collect from sellers to comply with anti-theft regulations?
Short answer: Most state licensing schemes require dealers to collect and record government-issued photo identification from sellers, such as a driver's license or passport, as part of standard anti-theft compliance — the exact requirements, including whether copies must be retained and for how long, vary by state, so confirm the specific standard that applies to your licence.
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Get Started Free →Why ID collection is a core compliance requirement
Requiring sellers to provide identification creates accountability and traceability that deters the resale of stolen material — this is one of the most fundamental anti-theft measures built into scrap dealer licensing schemes, and skipping it is a genuine compliance failure, not a minor oversight.
What’s typically required
Government-issued photo identification, most commonly a driver’s license or passport, is the standard requirement — some jurisdictions specify exactly what details must be recorded from that ID, and whether a physical or digital copy needs to be retained as part of your records.
What to do if you’re unsure of your exact obligations
Your state’s licensing authority should provide specific guidance on ID collection requirements as part of your licence conditions — treating this as a firm, non-negotiable step for every transaction, rather than something applied selectively, is the safest practical approach.
How ScrapTrade Makes This Easier
Buyers operating through ScrapTrade who maintain consistent ID collection practices build stronger trust with sellers, who increasingly expect this as a sign of a properly compliant operation.
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