Auto thefts in the U.S. have dropped by 23% in the last two decades, according to the National Insurance Crime Bureau.
But thieves are increasingly using technology to find new ways to target vehicles through auto transport theft and VIN fraud, with dealers increasingly being victims.
Driving the news: In June, the U.S. Attorney for the Southern District of New York, Homeland Security, and the New York City Police Department announced the indictment of 13 individuals for a crime ring involving approximately 100 stolen cars worth millions of dollars, which included creating fraudulent VINs.
George Ripley, a veteran detective who is now first vice president of the Northeast Chapter of the International Association of Auto Theft Investigators, points out that this type of auto fraud for stealing vehicles is rising.
Criminals are using AI to manipulate vehicle information and create synthetic identities.
“There’s a massive increase in exposure for all parties involved in any transaction because of the ease of what you can manipulate and misrepresent in a digital world,” said Ripley, who recently spoke with CDG about VIN fraud and appeared on Daily Dealer Live Monday, expanding on various schemes targeting dealers.
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More than one victim in the crime: Ripley said the VIN fraud likely will have multiple parties impacted, including some dealers.
The scenario he’s seen is that the vehicle is stolen, and then it is laundered using a fraudulent VIN.
A dealer buys the vehicle, tampered plate, new tire pressure sticker and all, then sells it to a financed buyer, who later discovers it was stolen.
“So you have five different people in play…but dealers up front have a lot of exposure,” Ripley said.
Need to verify: Ripley understands the need for inventory on the used vehicle market. But he urges dealers to slow down and verify the VIN by checking the OBD-II port or alternative locations for VIN etching.
“They all take extra time, but it all goes to really being vigilant and protecting yourself upfront to make sure you’re getting what you believe to be getting, and you’re not part of this tangled web,” Ripley said.
Exploding vehicle transport theft: A growing scheme involves criminals committing cargo theft, which includes stealing vehicles. The American Transportation Research Institute estimated that cargo theft totals more than $6 billion in losses or $18 million per day.
Ripley said there’s been a 1,400% increase in strategic cargo theft of vehicles.
He explained that criminals will go on transport marketplaces and misrepresent themselves as a legit carrier, utilizing AI tools or stealing someone’s Federal Carrier Safety Administration number.
And double brokering with a legit carrier, the vehicles are rerouted to a controlled location.
Takeaway for dealers: In his visit with Sam D’Arc on Daily Dealer Live, Ripley's core recommendation for every dealer is a layered defense, including covert tracking devices, staff training on fraud indicators, and a verification step built into standard operating procedure.
“Authentication is the name of the game,” Ripley said. “Train your staff because the weakest part of any security chain is the human beings, and human beings' trust is being exploited to commit these thefts by fraud.”
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