Wisconsin Woman Unknowingly Buys a Cloned Stolen Vehicle

The accompanying video describes why consumers should be careful when buying a used vehicle, especially one that's price "too good to be true." An innocent woman in Lancaster, Wisc., bought a used GMC Denali for $30,000 and for the last two years she has been enjoying its use. Meanwhile, Carfax notified NICB that the Denali might be a "clone" since Carfax had information that an identical Denali was currently registered in Peabody, Mass.

Investigation by NICB quickly revealed that the vehicle in Peabody was the legitimate vehicle and that the one in Lancaster was most likely a stolen vehicle. The vehicle owner in Lancaster was contacted and agreed to bring her Denali to the police department for an inspection. NICB Senior Special Agent Larry Burzynski confirmed that it was a stolen vehicle taken from Palm Beach County, Fla., in 2007.

Fortunately for the clone buyer, Wisconsin state law mandates that all new and used car dealers be licensed and bonded. If law enforcement confiscates a vehicle from an individual who purchased the vehicle from a dealer, then the dealer must make the buyer whole again. Since the buyer in this case bought the clone from a dealer and it was confiscated by law enforcement, she will not suffer any financial loss from the transaction. But in most other states, this same situation could result in the complete loss of a buyer's investment.

The NICB offers these tips to help you avoid becoming a victim of vehicle cloning:

  • Check the VIN with the department of motor vehicles
  • Use NICB's free VINCheck service
  • Be careful when purchasing a used vehicle from someone advertising it online or in the newspaper
  • Have a private company conduct a vehicle history report
  • Trust your instincts. If a used vehicle deal sounds too good to be true... walk away
Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800-TEL-NICB (800-835-6422) or by submitting a form on our website.

Anyone with information concerning insurance fraud or vehicle theft can report it by calling toll-free 800.TEL.NICB (800.835.6422) or submitting a form on our website.

About the National Insurance Crime Bureau: Headquartered in Oak Brook, Ill., the NICB is the nation's leading not-for-profit organization exclusively dedicated to combatting and preventing insurance crime through Intelligence, Analytics, and Operations; Education and Crime Prevention; and Strategy, Policy, and Advocacy. The NICB is supported by more than 1,200 property-casualty insurers, self-insureds, rental car, vehicle finance, and auto auctions. To learn more, visit www.nicb.org.