NATIONAL CONFERENCE s Motor Vehicle Theft Prevention April 24, 2008 NCSL's Auto Theft Prevention Working Group
Presentation Outline Why is NCSL concerned with auto theft and fraud? Vehicle Theft in the U.S. Why is auto theft profitable? Issues associated with auto theft and fraud What are states doing right now?
Why is NCSL concerned with Auto Theft and Fraud? Auto Insurance costs to the public Public safety issues Monetary losses to the victim
Auto Theft in the US According to the National Insurance Crime Bureau: A vehicle is stolen in the U.S. every 25.5 seconds In 2006, about 1.2 million motor vehicles in the United States were reported stolen Vehicle losses were about $8 billion. Only 59 % of the stolen vehicles were recovered, leaving thousands unaccounted for.
According to NICB 1. Las Vegas/ Paradise NV 2. Stockton, CA 3. Visalia/Porterville, CA 4. Phoenix/Mesa/Scottsdale, AZ 5. Modesto, CA 6. Seattle/ Tacoma/ Bellevue, WA 7. Sacramento/Arden-Arcade/Roseville, Arcade/Roseville, CA 8. Fresno, CA 9. Yakima, WA 10. Tucson, AZ 2006: The ten metropolitan statistical areas with the highest vehicle theft rates are:
Why is Auto Theft Profitable? The enterprise is full of opportunity- VIN Cloning Phantom/ Paper cars Chop Shops Exporting Title Washing A new scheme is invented everyday
Vehicle/VIN Cloning A thief copies a VIN from a legally owned and documented vehicle-- sitting in a parking lot or dealership lot. The VIN is then used to make counterfeit VIN tags. The thief then steals a vehicle similar to the one from which he took the legitimate VIN. The stolen vehicle's legitimate VIN tag is then replaced with the counterfeit VIN tag and the vehicle is now a "clone" of the legitimate vehicle parked in the lot. With the counterfeit VIN, the stolen vehicle can easily be sold without detection by the authorities.
VIN Cloning and Phantom Cars Individual obtains insurance on a car that doesn't really exist, then reports it stolen and collects the claim payment. This may be done by, switching the VIN and title from a salvaged or stolen car to a borrowed or rented car long enough to get insurance -- perhaps from several different companies. Often times antique or luxury vehicles are used in this scheme, since these valuable vehicles produce larger insurance settlements.
"Chop Shops" NATIONAL CONFERENCE Many stolen vehicles end up in "chop shops." People disassemble stolen vehicles and sell their parts to individuals, dealers, body shops. Thieves can sell the individual parts from older models for more money than the vehicle is worth intact.
Exporting: Stolen Vehicles To Other Countries Stolen vehicles are shipped intact to other countries where buyers can have them for a fraction of what they would cost -- no questions asked. Older cars are sent overseas to high bidders who want "classic" American cars. "Some vehicles stolen in North America are turning up in war zones including Iraq, where they can be used by suicide bombers," said Lieut. Greg Terp of the Miami-Dade police department.
Title Washing: Titling a vehicle in a state without recording title brands A person rebuilds a vehicle and patches together damaged and salvaged vehicles in one state, moves it to another state to obtain clear and clean title that gives an unsuspecting buyer no notice of previous damage. Can increase a vehicle s value and hide a vehicle s past. Example: Hurricane in Florida damages many cars on new and used car lots. Insurance companies brand all of the vehicles "Flood Damaged" and sell them at auction. Buyers from a state that does not have a "Flood" brand in their titling laws buy the vehicles, take them to their state, and title them in their state without the "Flood" brand. They can then sell the car for more money because it has no brand on its title.
Title Washing: Hurricane Katrina Hurricanes Katrina, Rita and Wilma left an estimated 600,000 vehicles flood damaged. Many of these vehicles are unsafe because water damage causes electronic components to corrode, possibly causing airbags, seat belts and brakes to not work properly. People are willing to fraudulently resell these vehicles to exploit consumers.
What's Happening Right Now Auto Theft Prevention Authorities Most ATPA's serve as funding mechanism to collect and disperse funds through grant processes for the purpose of reducing vehicle theft and fraud. The funds usually come from contributions from insurance companies and are dispersed to a board of directors to law enforcement agencies. From PA: "Goal is to combat auto theft through tough laws, improved enforcement and administration, effective prosecution and public education."
Auto Theft Prevention Authorities AK HI WA OR NV CA ID UT AZ MT WY CO NM ND MN WI SD MI IA NE OH IL IN WV KS MO KY TN OK AR MS AL GA LA TX NH VT NY PA VA NC SC FL ME MA RI CT NJ DE MD
ATPA's that work ATPA in Texas oversees a uniform program to prevent stolen motor vehicles from entering Mexico. In Michigan, a review of APTA revealed the funded task forces were involved in over 6,900 auto fraud cases from 1995 to 2007. Collaborative partnership between the Colorado Springs Police Department, the El Paso County Sheriff's Office and the Colorado State Patrol led to a 15.56 percent reduction in automobile theft in the Colorado Springs area between 2004 and 2005.
National Motor Vehicle Titling Information System NMVTIS: A Tool to Prevent Auto Theft & Fraud And to Aid Law Enforcement Information system designed to allow states to share vehicle title information, including critical theft and brand data, during titling transactions. Information to investigate and prevent fraud and theft is made available to law enforcement, and information to protect consumers from fraud and unsafe vehicles can be made available to the public.
Conclusion NATIONAL CONFERENCE Auto theft is the most expensive property crime in the United States. Western states are especially affected There is a need to explore principals for auto theft prevention Law Enforcement efforts and programs Effective ATPA's and other state legislation NMVTIS Other
Contacts for More Information Anne Teigen Policy Associate -- Transportation 303-856 856-1652 Anne.teigen@ncsl.org