Motor Vehicle Theft PreventionNATIONAL CONFERENCE of STATE LEGISLATURES The Forum for America’s Ideas Auto Theft in the US According to the National Insurance Crime Bureau: A vehicle

NATIONAL CONFERENCEof STATE LEGISLATURES

The Forum for America’s Ideas

Motor Vehicle Theft Prevention

NCSL's Auto Theft Prevention Working Group

April 24, 2008



Presentation OutlinePresentation Outline

Why is NCSL concerned with auto theft and Why is NCSL concerned with auto theft and fraud?fraud?Vehicle Theft in the U.S.Vehicle Theft in the U.S.Why is auto theft profitable? Issues Why is auto theft profitable? Issues associated with auto theft and fraud associated with auto theft and fraud What are states doing right now?What are states doing right now?



Why is NCSL concerned with Why is NCSL concerned with Auto Theft and Fraud?Auto Theft and Fraud?

Auto Insurance costs to the publicPublic safety issuesMonetary losses to the victim



Auto Theft in the USAuto Theft in the USAccording 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 stolenVehicle losses were about $8 billion.Only 59 % of the stolen vehicles were Only 59 % of the stolen vehicles were recovered, leaving thousands recovered, leaving thousands unaccounted for. unaccounted for.



According to NICBAccording to NICB

1. Las Vegas/ Paradise NV 1. Las Vegas/ Paradise NV 2. Stockton, CA2. Stockton, CA3. Visalia/Porterville, CA3. Visalia/Porterville, CA4. Phoenix/Mesa/Scottsdale, AZ4. Phoenix/Mesa/Scottsdale, AZ5. Modesto, CA5. Modesto, CA6. Seattle/ Tacoma/ Bellevue, WA6. Seattle/ Tacoma/ Bellevue, WA7. Sacramento/Arden7. Sacramento/Arden--Arcade/Roseville, CAArcade/Roseville, CA8. Fresno, CA8. Fresno, CA9. Yakima, WA9. Yakima, WA10. Tucson, AZ10. Tucson, AZ

2006: The ten metropolitan statistical areas with the 2006: The ten metropolitan statistical areas with the highest vehicle theft rates are:highest vehicle theft rates are:



Why is Auto Theft Profitable?Why is Auto Theft Profitable?

VIN Cloning

Phantom/ Paper cars

Chop Shops

Exporting

Title Washing

A new scheme is invented everyday

The enterprise is full of opportunity-



Vehicle/VIN CloningVehicle/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 CarsVIN 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""Chop Shops"

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 Exporting: Stolen Vehicles To Other CountriesOther 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: 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 KatrinaTitle 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 NowWhat's Happening Right NowAuto Theft Prevention AuthoritiesAuto 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 AuthoritiesAuto Theft Prevention Authorities

MD

AK

HI

WA

OR

CA

ID

NV

MT

WY

UTCO

AZ NM

ND

SD

NE

KS

OK

TX

MN

IA

MO

AR

LA

WI

IL

MI

IN

KY

TN

MS AL GA

FL

OH

WV VA

NC

SC

DE

PANJ

NY

CT

RI

MA

VTNH

ME



ATPA's that workATPA's that workATPA in Texas oversees a uniform program to prevent stolen motor vehicles from entering Mexico.

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.

In Michigan, a review of APTA revealed the funded task forces were involved in over 6,900 auto fraud cases from 1995 to 2007.



National Motor Vehicle Titling National Motor Vehicle Titling Information SystemInformation System

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.

NMVTIS: A Tool to Prevent Auto Theft & FraudAnd to Aid Law Enforcement



ConclusionConclusion

Auto theft is the most expensive property Auto theft is the most expensive property crime in the United States.crime in the United States.Western states are especially affectedWestern states are especially affectedThere is a need to explore principals for There is a need to explore principals for auto theft prevention auto theft prevention

• Law Enforcement efforts and programs• Effective ATPA's and other state legislation• NMVTIS• Other



Contacts for More InformationContacts for More Information

Anne TeigenAnne TeigenPolicy Associate Policy Associate ---- TransportationTransportation303303--856856--16521652Anne.teigen@[email protected]

Documents

Motor Vehicle Theft PreventionNATIONAL CONFERENCE of STATE LEGISLATURES The Forum for America’s Ideas Auto Theft in the US According to the National Insurance Crime Bureau: A vehicle