Wednesday, April 15, 2009

Fight Against "Car Cloning"

On March 24, the FBI issued arrest warrants for 17 people in Tampa, Miami, Chicago, Mexico, and Canada against individuals accused of 'car cloning'--stealing the identity of legitimately owned vehicles and tranferring it to stolen cars to make them look legal. The FBI stated that the ring had been operating in the U.S. for over 20 years; had cloned over 1000s of vehicles which were moved and sold in 20 states and several countries; and had caused more than $25 million in losses to consumers and banks. Unfourtunately this ring is just one of many that law enforcement officials across the nation are trying to break, and until then if you are car shopping you should beware.

Following is a list of things that are being done by officials and car auctions/sellers to help protect vehicle consumers, and a list of things you could do if looking to buy a car:

  • NMVTIS--an electronic system, established by federal law in 1992, that enables users to access automobile titling information, including brand(title) history and certain historical theft data. A "brand" is a descriptive label assigned to a vehicle by a state that identifies the vehicle's current or prior condition, such as "junk," "salvage," or "flood." By capturing into one system specific pieces of information from state motor vehicle titling agencies, automobile recyclers, junk and salvage yards, and insurance carriers, NMVTIS protects states and consumers from title fraud, keeps stolen vehicles from being retitled, and makes it more difficult for criminals to conceal stolen vehicles for criminal purposes. Currently 27 states participate in it, with 10 more working towards participation. To see a complete list of participating states go here: http://www.nmvtis.gov/NMVTIS_Map.pdf
  • Many Online Car Auctions now decode their vehicles VIN when listing their vehicles and will only let registered appraisers into their storage facilities. The appraisers must sign in and out when they go to the facilities. Once vehicles are sold, the customers or transporters pick up the vehicle outside of the facilities.
  • In addition, the Better Business Bureau and F.B. I. offer the following advice to car-buying consumers to avoid getting snared into buying a cloned vehicle, and determine if a vehicle is cloned:
  1. Get a copy of the car’s vehicle history report.
  2. Always check under the hood to ensure V.I.N. numbers match, and check for signs of tampering such as scratches.
  3. If you are car shopping, beware of a car being sold for substantially less than comparable makes and models.
  4. Look for incorrect spellings on paperwork, like vehicle titles.
  5. If you think your car was cloned (for instance, you receive notice of unpaid parking tickets that aren't yours), contact your local police.
  6. Trust your intuition—if it sounds too good to be true, it probably is!

--Melissa

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