Why it matters
Title fraud isn't what it used to be.
Today's criminals use counterfeit titles, stolen identities, altered ownership documents, and stolen vehicles to trick dealerships into purchasing inventory or completing fraudulent transactions.
The impact can be significant :
The encouraging news? Most title fraud schemes share common warning signs—and many can be stopped with consistent verification procedures and a well-trained staff.
Here are five ways to reduce your risk.
1. Verify the seller's identity. Every. Single. Time.
Remember: A title alone doesn't confirm ownership. Always verify that the person presenting it is the rightful owner. Always compare the seller's government-issued ID to the title and supporting documents.
Watch for:
Bottom line: If someone pressures you to skip verification, treat it as a red flag—not a convenience.
Your perspective helps NHADA better understand the needs of our members and determine where we can provide greater support.
2. Inspect the title, not just the information.
Counterfeit titles have become increasingly sophisticated, but they often leave clues.
Look for:
Best practice: Make sure anyone acquiring inventory understands what legitimate titles from New Hampshire and neighboring states should look like.
If something looks off, trust your instincts and investigate.
3. Verify the vehicle—not just the paperwork.
A vehicle history report is an important tool—but it shouldn't be your only one.
Confirm:
Smart dealers verify information using multiple sources before completing the purchase.
4. Slow down suspicious transactions.
Fraudsters count on urgency.
Common phrases include:
"I need to trade it today."
"I'm moving tomorrow."
"Someone else is ready to buy it."
"Can we skip that paperwork?"
Remember: Legitimate sellers understand that dealerships have verification procedures. One extra day of due diligence is far less expensive than buying a stolen vehicle.
5. Build a culture of fraud prevention.
The strongest fraud prevention tool isn't software—it's your employees.
Every dealership should have:
Annual fraud awareness training
Written title verification procedures
Management review for unusual transactions
A standardized acquisition checklist
Clear reporting procedures for suspected fraud
Your staff should know one thing: If something doesn't look right, stop the transaction.
The takeaway
Warning signs are often present in title fraud cases. Careful attention to those indicators can help identify potential fraud early. When a seller's identity doesn't match, a title looks unusual, or the transaction simply feels rushed, take the time to verify before moving forward.
A few extra minutes of diligence can save your dealership thousands of dollars and prevent months of complications.
Review the Vehicle History for Signs of VIN Cloning
A clean title doesn't always mean a clean history. Before taking a vehicle in trade, review the vehicle history report for inconsistencies that could indicate VIN cloning—a scheme where criminals use the VIN from a legitimate vehicle on a stolen or salvaged one.
Watch for red flags like:
Why it matters: A cloned VIN can appear legitimate until conflicting records begin to surface. Taking a few extra minutes to review the vehicle's history for unusual patterns can help identify fraud before your dealership purchases the vehicle.
Bottom line: If the vehicle's history doesn't make sense, don't assume there's a simple explanation. Investigate first, take in the trade second.
Author's Note: This article was written in collaboration by Jay O'Leary, Government Relations & Compliance Specialist, and Detective Sergeant Craig Gagne of the New Hampshire State Police Troop G Investigations Unit. Drawing on their combined experience investigating vehicle fraud, title fraud, and automotive theft, they provide practical guidance to help dealers and consumers recognize common vehicle fraud schemes, identify warning signs before completing a purchase, and understand the simple steps that can prevent costly mistakes.