CONSUMER ALERTS

October 2009

Steer clear of stolen car scams

With more families trying to stretch their dollars, buying a used car instead of a new one is becoming a popular option. As a result, some law enforcement officials are reporting a rise in a crime called VIN (vehicle identification number) cloning. If you’re shopping for a used car, the Better Business Bureau (BBB) advises you to do your research or you could unknowingly purchase a stolen car.

      The BBB explains that VIN cloning is essentially auto identity theft that car thieves use to unload stolen vehicles. A car’s VIN is a unique number that serves as a way to recognize that specific car. The number also is used by police to track down and flag stolen cars. To avoid being detected, thieves will “clone” a stolen car’s VIN number to match that of a car that isn’t stolen.

                According to recent numbers from CARFAX, as many as 225,000 of the 1.5 million cars stolen every year have been subjected to VIN cloning. In some cases, thieves will punch out a new VIN and replace the stolen vehicle’s dashboard VIN with the new one. Or, they’ll generate their own authentic-looking documents with phony VINs. Then they’re ready to sell the vehicle, usually through classified ads or other informal methods. Some cloned-VIN vehicles may wind up in auctions or, unknown to the proprietor, on used-car lots.

When police are able to track down the stolen cars, they will seize the vehicle from the buyer—and there is usually little recourse for the scammed buyer to get his or her money back.

      The BBB recommends taking these steps to avoid becoming a victim of VIN cloning, whether you are a potential car buyer or an owner of a car whose VIN might be cloned:

•  Be extremely cautious if you see a late-model luxury car or SUV being offered for sale significantly under normal market price.

•  Do not fall for the “we need cash quickly” excuse. Exercise due diligence.

•  Check the VIN number on the dashboard, inside the door jamb and under the hood against the car’s title documents for discrepancies.

•  Carefully examine the car’s title, registration, and other documents. Fake documents sometimes contain misspelled words.

•  If you still have questions about the validity of the car’s VIN, obtain a comprehensive vehicle history report.

•  If you believe your car has had its VIN cloned—one giveaway, according to the FBI, is if you receive a notice for unpaid parking tickets—contact your local law enforcement.

      For more advice on shopping for a new or used car, visit www.bbb.org.