How Scammers Are Doing Fake Car Titles

Sophisticated Car Title Scams
Car title scams are getting much, much more sophisticated. Be very wary if you’re purchasing a used vehicle from a private seller like on Craigslist or Facebook. Scammers are using new techniques to sell a car four or five times over, collecting the same money from different people for one car without facing consequences.

The Colorado and Texas Case
Here’s how this one worked, and this is becoming more common. The victim was from Colorado, and the vehicle was sold in Texas. The scammer put a car on Facebook Marketplace, where many private sales take place. The buyer flew from Colorado to Houston, met a real person, got the title, and paid cash for the truck. The seller only had one key fob, which seemed like no big deal since people often lose keys.

Issues at the Recorder’s Office
The buyer went to the recorder’s office in their county in Colorado to get the title transferred, but the recorder said something seemed off about the title. The VIN numbers on the vehicle—in the doors, on the dash, and under the hood—all matched the title. The name on the title came back to a real person, and the license plates matched. However, a detective noticed the title had been washed.

What is a Washed Title?
When a title is washed, a person uses chemicals to remove some of the letters and numbers and types in new ones. In this case, the title was actually for a different vehicle. The VIN number was altered to match the vehicle sold, but the actual vehicle was a parts-only car, a recovered theft. To make matters worse, a tracking device was hidden on the truck.

Tracking Devices and Repeated Sales
The tracking device allowed the scammer to track the vehicle, return to the buyer’s driveway, and steal the car to resell it again with another fake title. The buyer couldn’t report it stolen because they never had the car registered in their name. This scheme allows scammers to keep reselling the same vehicle repeatedly while collecting money.

Protect Yourself When Buying a Used Car
When buying a vehicle from a private seller, always perform your due diligence. Have the title checked out by the DMV and ask the police to inspect the vehicle in person. Some sellers may resist, saying they’ll find another buyer. That’s fine—find another car. There are plenty of cars for sale.

Avoid Transactions Without a Title
Never buy a used car without getting a legitimate title at the time of purchase. If the seller promises to send the title later, apply for a duplicate, or rely on a bill of sale, don’t proceed. Without a legitimate title, you might never get the vehicle registered, no matter how much you paid.

Risks of Title Issues
If a vehicle is stolen, has liens, or is a parts-only car, you’ll lose your money and won’t get a title. Even if you have a bill of sale or insurance, some vehicles are simply ineligible for a title due to their VIN history. Carfax and VIN checkers are not foolproof; they are consumer-level tools and cannot replace checks by the police, DMV, or NMVTIS.

The Importance of Government Checks
You need to check three government sources to confirm a vehicle’s legitimacy: police for stolen vehicles, the DMV for liens, and NMVTIS for salvage status. If the vehicle isn’t legitimate, you won’t get a title. Though this issue affects 20-30% of transactions, losing tens of thousands of dollars isn’t worth the risk.

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