A recent report from CARFAX suspected that nearly 2.5 million vehicles on the road have rolled back odometers, with a 14 percent increase in the past year. No state is immune to seeing the fraud, explained Matthew Dinghaum, investigator with the Iowa Department of Transportation’s Bureau of Investigation and Identity Protection.

The National Odometer and Title Fraud Enforcement Conference, June 7-11 in Duluth, Minnesota, will bring the issue to the forefront. The training for law enforcement, DMV offices, dealerships, title clerks and members of the auto industry will be focused on combating odometer and title fraud. Registration is open at notfea.net.

Dingbaum said some unscrupulous buyers are outbidding retail dealers with the intention of rolling back the odometer to sell the vehicle for over the market value.

“These sales normally take place off-site (normally in a parking lot) with no overhead costs and using their cell phone to utilize Marketplace or Craigslist,” Dingbaum said.

He added the fraud has multiple implications and can impact multiple victims.

“If a dealer buys the vehicle at what they believe is the true mileage (low) and then sells the vehicle at fair market value for the low mileage, and it is later discovered the odometer was rolled back, the customer is going to file a complaint against the dealer,” Dingbaum said. “The person who paid fair market value for the vehicle with the low mileage and discovers the true high mileage is now the victim and has to disclose this in the future. If the dealer takes the vehicle back and makes it right with the customer, they are now the victim. This can continue back until you find the fraudster, who may or may not have even titled the vehicle. The fraudster may have jumped the title or claimed to have been working for a dealership that is a completely false assignment on the title.”

The sale of these vehicles across state lines can further complicate investigations.

Another increasing version of fraud impacting the industry is the washing of liens from titles.

“We still have some states that provide the buyer with the title and not the lien holder. This opens the door for fraud,” Dingbaum said. Fraudsters can purchase vehicles using their true identities or false identities, and if provided with the title, forge paperwork, ultimately washing or removing a lien. Brands can also be washed from titles if the fraud actors know how each state brands their vehicle titles and their state regulations.”

Dingbaum said these are just two examples of fraud that individuals attending the NOTFEA conference, including dealers, are combating and will discuss strategies on during the event. Find information about registering here.

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