Title Fraud affects everyone, dealers, lenders, insurance, consumers, even state agencies. There is not a shortage of ways fraudsters commit title fraud. Here are just a few:
Hiding Liens: Altering or presenting outdated titles to hide existing liens, misleading buyers into thinking the vehicle is debt-free.
Title Washing: Fraudulently removing salvage or damage history from titles to make vehicles appear undamaged.
Duplicate Titles: Obtaining duplicate titles to sell the same car to multiple buyers, leaving legitimate buyers with worthless paperwork.
Odometer Rollback: Manually reducing odometer readings to make vehicles seem newer, which is illegal and unethical.
VIN Cloning: Using a legitimate vehicle's VIN on a stolen one, making it appear legal and leaving the buyer with stolen property.
Title Jumping: Selling vehicles without registering them in the seller's name, leading to undisclosed issues and complications for buyers, especially with out-of-state transactions involving salvaged vehicles.
Forged Signatures: Scammers forge signatures to transfer ownership without the original owner’s consent.
Document Tampering: Altering key information on titles to mislead buyers about the vehicle’s history or condition.
Reconstructing Salvage Titles: Rebuilding severely damaged vehicles and obtaining clean titles by registering them in states with lenient title laws.
Title Theft: Stealing original titles to sell or use as collateral for loans, leaving the original owner without proof of ownership.
Illegal Transfers: Transferring vehicle ownership without proper documentation, often involving stolen vehicles or fraudulent identities.
Did I miss any?
If only there was a single platform that can catch all of these....? 😎