Cloned cars, the latest in auto fraud

With all the recent advances in computers, software, the internet and internet search (like Google), etc… it was inevitable that there would be a similar increase in auto fraud.  The latest trend in auto fraud is car cloning.  This is where thieves take the identification pieces (VIN plates, factory stickers and title work) on a stolen vehicle and forge or replace them with pieces from a legitimate vehicle.  The vehicle is then sold to unsuspecting buyers through online auctions like Ebay Motors and Yahoo auctions and local newspapers.

The problem with these cloned cars is that when the car shows up as stolen (like when they plug in your cars computer for a service, gets entered into a police database, etc… the car will be confiscated and the buyer will be out their purchase price plus the amount of the outstanding loan.  It is also very hard, if not impossible, to catch the fraud perpetrators.  They usually will have a title in someone else’s name and will basically sell it on behalf of a friend or similar.  This is curb-stoning which is illegal in most states, but for the most part goes unpunished because there is no way to trace the fraudsters.

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Cloned cars are going to be a huge problem.  It is hard, if not impossible to catch car cloners.  It results in quick financial gain for the thieves (the usual car or truck being cloned are expensive SUV’s like the Cadillac Escalade and at an average price of around $40,000 that’s a huge lure for cloners).  According to the National Insurance Crime Bureau (NICB), “New VIN’s, manufacturing certificates and tags can all be made.  They take a good number, dummy up a VIN plate and then sell it for top dollar.”  Cloned cars give thieves an easy route to quick cash and lots of it.  It is far easier and financially rewarding to clone a car than to sell hot stolen parts.  It is also almost impossible to be caught as no one knows what is going on versus a illegal chop shop which has a very limited lifespan before too many people know about it and its whereabouts are eventually leaked to the authorities.  Cloned cars leave no trace, whereas stolen parts are much more easily traced.

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The problem with cloned cars is that it has only just begun.  Authorities are saying due to the low risk and high rewards it will catch on like crack cocaine.  It is estimated that in the last 4 years there has been a 400% increase in cloned cars alone.  This is definitely going to be a big problem and one that needs a serious look at by the authorities. 

So, what is one to do to avoid being stuck with a cloned car?  Be observant.  If a deal looks too good to be true than it probably is.  If you see a car being sold for less than half of what it is worth or similar warning signs should go up.  If a car is just too cheap investigate.  Maybe it isn’t a clone car, but it could be a flood or rebuilt car (you need to watch out for these too).  A Carfax report should always be made a standard requirement before purchasing any used car.  Always research any car on Google and Edmunds.com before you purchase to find what the correct selling price should be and other helpful info. 

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Be observant and look for incorrect spelling on paperwork like titles.  It is a good idea to compare to a known correct title and look for abnormalities.  Look at other VIN code placements on the vehicle.  No cloner goes through the trouble of changing every VIN sticker or label.  If you look inside the trunk, both doors, under the hood, etc… you will find many other VIN locations to check.  Another big sign of fraud or cloning is the curb stoning.  Avoid anyone that sells a car to you with a title signed and printed with someone else’s name that is not present (this alone will help you rule out 90% of auto fraud as thieves do not want to leave their name on anything that will be permanently on file with your state DMV.  Also, look up the seller and or their business on Google.  Look them up with the DMV, state records (which will show fraud convictions), and the better business bureau.  And last but not least, trust your instincts, if something seems fishy or too good to be true it probably is and its time to walk away.  Article courtesy of MDWholesale.com headlight repair - your driving safety is our top concern.

 

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