It’s a scam that starts with a stolen car and ends with a trail of unhappy people and lots of financial loss. It’s called car cloning, and if you’re buying a new car, you need to know what this scam entails and how to protect yourself.
This is how the scam works. A criminal has a stolen car they want to sell, but any search on the car’s title would show that it’s a stolen car. To hide the identity of the stolen car, the criminal removes the vehicle identification number (VIN) plates. He or she replaces those VIN plates on the stolen car with VIN plates from another car, a legitimately owned car of similar make and model – possibly even one that’s been sold for salvage. The criminal adds a few phony documents, registers the car in another state and winds up with a car that can be sold. The stolen car with its new assumed identity is a “cloned” car, and the FBI estimates that more than $25 million has been lost because of this practice.
If you buy a cloned car, that car can be confiscated. That’s the good news. The bad news is that there’s a possibility that you will be accused of any number of crimes that may be associated with that car. You’ll also still be responsible for any loans you may have taken out to pay for the car, even though you no longer have it in your possession.
In 2010, the Department of Justice will be launching a new database known as the NMVTIS, or National Motor Vehicle Title Information System. Once the database is fully operational, criminals won’t be able to steal one car’s identity then register a car using that identity in another state. Until the database is up and operational, it’s up to you to protect yourself from car cloning.
The following are some tips that can alert you to the possibility that a car may have been cloned:
Check out the VIN plate. If it looks like it may have been tampered with – for example, it has scratches or the bolts holding it in place don’t match or seem the wrong size – walk away.
Look for the different areas where the VIN appears on the car and see if they all match. If not, you’re looking at a cloned car.
If a car is being offered for sale at a substantially reduced price when compared to other cars of its make and model in similar condition, be wary.
If a potential seller is hesitant to provide you with information or identification about the car, watch out.
Look for paperwork that contains misspellings or with names and addresses that don’t match those of the seller.
Get a copy of the vehicle history report for the car you’re considering and see if it’s consistent with what the seller is telling you.
Don’t assume that a car you’re purchasing from a dealership is immune to cloning. Car dealers can be taken advantage of just like anyone else.
If something doesn’t feel right, walk away. There are lots of used cars out there and you can find a legitimate option that’s right for you.
In addition, if you suspect that a car has been cloned, contact your local police department or law enforcement agency. They are the only ones who can bring the criminal to justice and eliminate this scary practice.
