Auto Insurance Customers Have Little Defense Against VIN Cloning

Consumers are being warned against a growing scam that not even their auto insurance policies are likely to cover if they become victims.

A recent announcement from the Better Business Bureau focused on VIN cloning, which has become more common this decade as criminals look for ways to unload stolen cars. The scam involves removing the vehicle identification number of a stolen car and replacing it with another one before selling the vehicle at auction or in the classifieds.

The BBB cited statistics from Carfax warning that as many as 225,000 stolen vehicles each year may be subjected to VIN cloning.

"VIN cloning has two victims. The first is the victim who had their car stolen, and the second is the unsuspecting buyer because, when the police track down the stolen car, they’re going to give it back to the rightful owner and the new owner will suddenly have no car or a way to get his or her money back," said Steve Cox of the BBB.

This means that even most auto insurance companies will not be able to help a consumer who ends up victimized by this scam. With this in mind, the best defense against the scam is to carefully scrutinize all registration and title documents when buying a car because of the inaccuracies they may contain. Another tip is to steer clear of late-model higher-end vehicles that are being sold for unusually low prices.

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