Prevention Of Vehicle Fraud

Buying a vehicle, especially a used vehicle, is not an easy job. Because the automobile industry is full of scammers who might trap you. This blog is a complete guide for every citizen to escape any vehicle fraud.

Types of Vehicle Fraud

1. Fake documentation

Some of the vehicle dealers provide fake documents like manipulated registration certificates, related receipts, or fake vehicle tax payment bills, etc. There is a comprehensive law in India to penalize such kind of fraudulents.

2. Identity theft

The fraudsters use stolen personal information to purchase, lease a vehicle or obtain a loan on a vehicle. This malpractice harms both sides either the buyer or the dealership.

3. Warranty fraud

Warranty fraud is also a key menace in this field that may result in huge financial losses for businesses and individuals. This sort of fraud includes false promises, misrepresenting a product’s condition or employing counterfeit parts.

4. Odometer fraud

This is a widespread practice in the automotive field. The seller/dealers tamper the odometer to decrease the actual mileage of the vehicle. They make the buyer fool that the vehicle has run just fewer miles.

5. Forged VIN

Forged vehicle identification number plates are also provided to the buyers to sell suspicious vehicles by fraud.

6. Title washing

It is also a fraudulent practice to alter a vehicle’s title history to hide its damages which can be a technical fault, any major accident etc. Hiding such serious faults can cause the loss of lives.

7. Insurance fraud

Every person gets insurance for his vehicle, especially for cars. In this wake, false, misleading statements or records from insurance companies, their agents or the vehicle owners are also a fraud that widely prevails in the country.

Vehicle fraud prevention measures

Here are some important elements that everyone should keep in his mind, while sell-purchase of vehicle, to avoid any kind of financial, physical or mental loss.

1. Verification of documents

When you are buying or purchasing any vehicle the first and foremost step is to check out the important vehicle documents or credentials like vehicle registration certificate, road permit certificate and other documents related to tax or loan clearance etc.

Moreover, you are supposed to get it verified from the concerned RTO.

2. Vehicle history enquiry

One should enquire about the vehicle’s history whether the vehicle is used in any criminal act or stolen. It can easily be enquired from the police station or any other inquiry agency.

3. Vehicle inspection

During sell and purchase of a vehicle, get it inspected by an expert mechanic who will help you to detect the faults if there are any. Nowadays, minor to major scratches or dents are managed to be concealed through different techniques like full vehicle body shower/colour.

4. Authentication of engine

During the process, the originality of the engine should be checked by examining the Engine Number/Chassis Number to escape any fraud.

5. Complete information about the party:

Once the agreement is signed, you should acquire the complete details of the person/party who is selling or purchasing the vehicle, as if you meet any fraud you can approach that person easily.

6. Safe vehicle insurance

Always go for a reliable insurance company for your vehicle insurance. Maintain a complete record of your payments and avoid fraud agents. The insurers should also remain vigilant to prevent any misleading statements or fraud.

In conclusion, after discussing every point now it is clear how to prevent vehicle fraud