Stolen IDs Being Used to Steal Cars

Forget hot-wiring. As new technology makes it harder to steal cars the old-fashioned way, today’s thieves are using more sophisticated “white-collar” methods to get their hands on a set of wheels, according to the National Insurance Crime Bureau (NICB).

Verita Hines-Flagg

The NICB and its law enforcement partners report a growing number of these cases which, in legal terms, constitute financial fraud. Therefore, these stolen vehicles are not counted as auto thefts — which may partially account for the steady decline in auto theft crime statistics over the past two decades.

Over the next few months, NICB will highlight several of the new schemes that criminals are using to steal cars in order to increase public awareness and thwart these crimes.

Stolen Identification

One of the newest schemes involves the use of stolen forms of identification.  Crooks use stolen IDs to fraudulently lease or obtain loans to purchase new vehicles. Once they drive the vehicle off the dealer’s lot, they skip out without ever making scheduled payments. Often, the cars are then sold to unsuspecting buyers after the Vehicle Identification Numbers (VINs) have been switched.

In one recent case, NICB Senior Special Agent Mike Kelso, working with Brown Deer, Wisc. police, uncovered an ID theft ring in Detroit, Mich. The crooks used stolen IDs to fraudulently lease five vehicles worth more than $300,000 which they later planned to sell.

Arrested and convicted on charges of conspiracy to commit mail and wire fraud and aggravated identity theft were:

  • 54-year-old Verita Hines-Flagg of Belleville, Mich., sentenced to five years in prison; and
  • 29-year-old Benjamin Hines of Detroit, Mich., sentenced to 18 months in prison and three years of supervised release.

During the investigation, police also recovered five fake Michigan driver’s licenses, the personal identifying information of several identity theft victims, and over $20,000 worth of fraudulently purchased merchandise.

While investigators report a noticeable increase in this type of auto theft, there is currently no central database that quantifies these crimes.

“Trying to put a number on these kinds of thefts is a challenge,” said NICB President and CEO Joe Wehrle. “It’s comparable to a hacker stealing IDs — you don’t know you’re a victim until it’s too late. Most of these thefts don’t show up in traditional crime reporting numbers and become financial losses for lenders, car rental companies and others. The result is millions of dollars added to the cost of doing business which is ultimately passed on to consumers.”

NICB advises consumers to frequently check their credit reports for signs that someone else is using their identity to take out new loans by going to www.annualcreditreport.com.

Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800-TEL-NICB (800-835-6422), texting keyword “fraud” to TIP411 (847411) or submitting a form on our website. Or, download the NICB Fraud Tips app on your iPhone or Android device.

About the National Insurance Crime Bureau: headquartered in Des Plaines, Ill., the NICB is the nation’s leading not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through data analytics, investigations, training, legislative advocacy and public awareness. The NICB is supported by more than 1,100 property and casualty insurance companies and self-insured organizations. NICB member companies wrote $371 billion in insurance premiums in 2013, or more than 78 percent of the nation’s property/casualty insurance. That includes more than 93 percent ($168 billion) of the nation’s personal auto insurance. To learn more, visit www.nicb.org.

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