REPORT: FBI busts up $25M car cloning ring
The Federal Bureau of Investigations has shut down a car theft ring operating in the U.S. for more than 20 years, causing in excess of $25 million in losses to owners and banks. According to CNN, the ring would clone cars, swiping the legal identity of one car – VIN numbers, tags, stickers -- and applying it to another, stolen car. The cloned car would then be sold to a dealer or consumer, and the countdown would begin: Eventually, most would be discovered as stolen property and confiscated, but the buyer would remain on the hook for the money owed.
For example, a man in Florida bought a Ford F-350 Super Duty for $27,000 last year from a used car dealer. Nine months later, it was tracked down and confiscated, but the bank has told the owner that he's still on the hook for the loan for a vehicle he no longer has.
Although the FBI admonishes, "Folks should be educated enough so that they don't buy a car from a stranger, on the street, or in a back alley somewhere," that might be a bit much, and the Super Duty owner bought the car at a used car lot. All kinds of private and public buyers have been taken, so do all of the research you can, and definitely don't buy your car in a back alley somewhere – the FBI got that much right! Hot tip, Jan.
Have you ever suffered an automobile-related theft? Take our poll after the jump!
[Source: CNN]
Reader Comments (Page 1 of 2)
Tkf 4:59PM (3/25/2009)
I put yes, because my Dad got his laptop stolen once.
tkf
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Tkf 5:00PM (3/25/2009)
My bad for putting tkf at the end...
jrhmobile 5:14PM (3/25/2009)
Me too. I have a beater, so they actually leave the car. But I've had my car looted maybe a half-dozen times over the last 30-odd years ...
Chad 2:42PM (3/27/2009)
I ordered a car stereo online. Installed it one morning. Took my car in to the dealer for a tuneup later that day. Car stereo was stolen that night. Hmmm... I wonder who knew I had that stereo in my car?
ronzo 5:02PM (3/25/2009)
** FBI admonishes, "Folks should be educated enough so that they don't buy a car from a stranger, on the street, or in a back alley somewhere," **
Thanks for the admonition, Big Brother. I would have never known not to buy a car in a back alley somewhere... sheesh...
What would we ever do without the government to tell us how to function on a day to day basis?
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superman211 6:54PM (3/25/2009)
LMAO! The FBI are such puffed up douche bags!
jg 7:02PM (3/25/2009)
It's advice, no one is telling you what to do.
And some need the advice. I know a guy who bought cars sight unseen from Ebay and was ripped off both times.
guerro 8:07PM (3/25/2009)
There are a lot of dumb consumers out there. You are being very sarcastic but the fact is, many idiots get taken for their $$ every day. If "big brother" didn't warn people, there would be someone like you giving them grief about the fact they are looking out for consumers. Damned if they do, damned if they don't.
kballs 10:03PM (3/25/2009)
What's lame is that the bank approved the loan for a car that didn't have a real identity! They should have insurance for this in case it's a fake/stolen/washed title, and if they're worried about insurance fraud they could at least do a license/title/VIN search (inspecting all the VINs on the car, doors, microdots, etc.) before giving you the loan (on the other hand it's sometimes nice to just get a cash loan ahead of time, caveat emptor).
The only way to follow the FBI's advice is to always buy a brand new car from a long-time dealer (leave the used cars for Mexico and Central/South America).
ronzo 5:06PM (3/25/2009)
In addition, I'd like to know if the government has decided to bail out the thieves who ran this racket, like they have been doing for the various financial institutions who have been running a racket and have raped the American people recently...
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Edmond Dantes 5:07PM (3/25/2009)
I thought that $50,000 Gallardo in the back alley was a little sketchy! Thanks, BB!
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Eric Bandholz 5:07PM (3/25/2009)
I had my 1990 Buick Park Avenue stolen in 2002. Car was recovered but totaled and I had to pay fees to the lot where they towed it to once recovered. That really pissed me off.
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montoym 10:20PM (3/25/2009)
Same thing happened to my dad. About 5yrs ago, his old truck was stolen, a '70 Chevy that my grandfather bought brand-new and we had just finished restoring.
Truck was missing one day and we called the police and nothing happened for a few months. Then they found the truck abandoned at an auto repair shop. Once the VIN was run, they discovered it was stolen and called my dad to let him know. He had to pay for the storage fees and such. Not to mention that the guy who stole it spray-painted the whole truck(inside too), tore up the window tint and added all kinds of AutoZone lights to the inside. To this day, my dad is still reluctant to put any more money into the truck after all that happened to it shortly after it was fixed up.
Soccer Mom 5:12PM (3/25/2009)
I don't get it - the guy who bought it is on the hood and punished, the guy who lost his vehicle to thieves is on the hook for paying some fees (Eric Bandholz), and what do thieves and FBI do? Split the profits?
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Polly Prissy Pants 6:36PM (3/25/2009)
Right on Mom. If this was a just world then the dealer would be on the hook for the entire amount. After all, he's the one selling stolen merchandise. Your average customer has no way to tell whether a car is stolen but a dealer sure better know if what he's selling is legit. Maybe it's my cynicism shining through but this sounds like one of those oddball "we must protect businesses at the expense of consumers" type of law. The way it is now, if I'm a dealer then the last thing I want to discover is that one of the cars on my lot is stolen so I'd work hard looking ther other way.
ronzo 8:02PM (3/25/2009)
yep
Rob 5:23PM (3/25/2009)
All the work involved in this, they could have figured out a way to make money legitimately. F people who take advantage of those that work for a living.
As far as having your car broken into, I am one of maybe 3 people in my neighborhood that actually puts cars in his garage. At a homeowners meeting someone complained about their car being broken into - wonder what they keep in their garage.
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ij70 5:34PM (3/25/2009)
" All the work involved in this, they could have figured out a way to make money legitimately. F people who take advantage of those that work for a living. "
It is not a job. It is a hobby! :-)
kal326 5:39PM (3/25/2009)
What a great legal system, since the bank and the buyer were on the up and up and no illegal activity occurred in their contract the contract stands and the buyer owes the bank. The only thing the buyer can do is sue the "thieves" to try to re-coop the loss due to breach of contract for selling stolen goods and I'm pretty sure we all know how that's gonna work out.
Worse yet this went on for 20yrs, seriously I know the goverment works slow but seriously.
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havco 5:47PM (3/25/2009)
my mother's prelude was stolen (on mother's day no less), and recvovered, $8k in damage, theives never caught.
my teg was broken into twice (drivers side window smashed). after the 1st break-in i bought an alarm. the 2nd time? it was supposedly IN a grage that was LOCKED at a shop. well the shop scammed me but not before they left my car outside and the alarm un-armed. another driver's window and loss of items in the car.
i F'ING HATE thieves
...just like the ones that steal bottle and cans from my blue bin
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