FAIRFAX, Va.--(BUSINESS WIRE)--Nov. 14, 2003

CARFAX, pioneer of the vehicle history report, is warning consumers about a type of automobile fraud that involves both a stolen vehicle and a stolen identity--a vehicle's identity, that is. The scam, called "VIN Cloning," involves using a vehicle identification number (VIN) from one vehicle to mask the true identity of the stolen vehicle. Unfortunately, these stolen vehicles end up in the hands of unsuspecting consumers.

Statistics just released by the FBI in their 2002 Uniform Crime Report (release dated October 27, 2003) indicate that last year was the third consecutive year that the vehicle theft rate increased. The agency's "Crime Clock" reveals that, based on those numbers, a vehicle is stolen every 25.3 seconds in the U.S. This translates into an estimated 1.2-million vehicles stolen with an approximate value of $8.4 billion. According to the National Insurance Crime Bureau (NICB), a non-profit organization that combats vehicle theft and insurance fraud, the ten most commonly stolen vehicles are:

1. Toyota Camry
2. Honda Accord
3. Honda Civic
4. Oldsmobile Cutlass Supreme/Ciera
5. Jeep Cherokee/Grand Cherokee
6. Chevrolet Full Size C/K Pickup
7. Toyota Corolla
8. Ford Taurus
9. Chevrolet Caprice
10. Ford F150 Pickup

As vehicle thefts increase, more and more consumers could find themselves paying for someone else's crime. Take Shawna Martin, for instance. She always loved jeeps, so she was thrilled when she purchased what she believed to be a used 1984 Jeep Cherokee--number five on the NICB's list. But, when she took the vehicle in to be serviced, her mechanic encountered a problem.

"He couldn't imagine why a 1984 Jeep was taking 1990 parts," said Martin. "I did a CARFAX Report and the mileage turned out to be vastly different."

Martin thought she was the victim of odometer fraud, so she called the state police to report the discrepancy. Instead of confirming the rollback, the police determined her 1984 Jeep was actually a 1990 Jeep that had been reported stolen. Police immediately confiscated the vehicle.

"They had it for nearly a year, which was horrible," she said. "I was making loan payments on a car I didn't even have."

When Martin was finally able to get the vehicle back, it was no longer mechanically sound because it was sitting in the impound lot for so long. Martin, as well as the dealer who unknowingly sold her the stolen car, was a victim of VIN Cloning.

"Danny," whose own identity must be concealed due to his history with VIN Cloning and undercover work with police, revealed one way that criminals can obtain VIN plates for stolen vehicles--from salvage and junkyards.

"You don't have to sneak in--a lot of yards have 'pick your own parts'," Danny said. "You go back there and take the VIN numbers off."

Car thieves can also obtain "new" VINs by swiping the plate or the number from vehicles sitting at dealerships or in parking lots. They then use the counterfeit numbers to obtain new ownership documents under false pretenses. Or, they may simply forge new documents using the stolen vehicle identity.

"Another way to describe vehicle cloning--that people can relate to--is identity theft," said Danny.

According to CARFAX, there are steps used car shoppers can take to avoid "cloned" vehicles. Scott Fredericks, Vice President of CARFAX, recommends that consumers start by checking the VIN on the vehicle's dashboard against the title documents.

"You should also match that number in other places on the vehicle including under the hood and the door jamb on the driver's side," said Fredericks. "Make sure it matches in all three spots."

Consumers also can protect themselves by obtaining a comprehensive vehicle history report for their dealer or at www.carfax.com.
"By comparing information in the report--such as the vehicle specifications and mileage history--with the information received from the seller, consumers can uncover potential 'clones,'" Fredericks said.

Fredericks also warns consumers to be careful about purchasing vehicles curbside, from parking lots or through classified ads. He recommends that all car buyers have their vehicle inspected by a trusted, professional mechanic prior to purchase.

For Shawna Martin, the lessons about this scam came too late. Today, she is more cautious.

"There are a lot of strange things going on out there," Martin said. "If anyone tells me they're buying a used car, I beg them to get a CARFAX Report because they just don't know what they could find."

ABOUT CARFAX

Since 1984, CARFAX has been helping people uncover the truth about used cars. The CARFAX Vehicle History Report - available through www.is-it-a-lemon.com/carfax/ and through car dealers - provides an instant background check on any used car. Vehicle History Reports help consumers and dealers avoid used cars with costly hidden problems, including major accident and salvage history, odometer fraud, flood damage and more. CARFAX takes its job of providing the truth about used cars so seriously it backs every Vehicle History Report with a $5,000 CARFAX Certified History Guarantee. Based in Fairfax, Virginia, CARFAX is a wholly owned subsidiary of R.L. Polk & Company.