Title Industry Scams and Frauds: Examples and How to Avoid Them

The title industry is not immune to scams and frauds. In fact, there are numerous cases of such incidents happening every day. This article will discuss two examples of such cases and provide tips on avoiding them.

The first example involves a man who filed fraudulent vehicle titles for a car he claimed to own. He then made a false insurance claim for the theft of the vehicle. As a result, he was arrested for false reports and title washing. Title washing is a process where a legitimate title record of a car is used to clear the title of another vehicle with a problem, such as a lien or salvage. In this case, the car was stolen, and the VIN was allegedly altered. People may try to change the VIN, especially on older cars, to represent a legitimate car or one with paperwork.

The second example involves a scrapyard that had 80 fraudulent titles. They accepted dozens of fraudulent vehicle titles or stolen cars for cash. Some fraudulent titles had previous reports of being stolen by their owners, while others had forged signatures from the company or missing notary. Some even had missing junk and non-repairable designations. The person involved in this case was title washing to remove the junk designation to sell the vehicle. They also had titles that didn’t match the owner’s signature and were determined to be forged. Some bill of sales had fraudulent VINs. However, it’s important to note that you can’t make up a VIN. It has to be one that’s issued, and every VIN is in a system somewhere and can be located easily.

It’s crucial to ensure that your title applications are legitimate. Additionally, if anyone is doing title work on your behalf, make sure they’re not just scamming up titles or filing fraudulent titles. Remember, you can’t outsmart the DMV, which deals with thousands of titles daily. While you may get away with fraudulent activities in the short run, it will eventually catch up with you when those papers are compared with prior records or documents.

In conclusion, there are numerous examples of scams and frauds in the title industry. However, with the proper precautions, you can avoid falling victim to them. Ensure that any title applications you do or have done on your behalf are legitimate, and be cautious of anyone offering to sell a vehicle with a questionable title. Don’t let your title get revoked due to fraudulent activities.

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