Part 8/10:
When customers trade in vehicles, dealerships typically need to pay off existing loans on those cars. However, some dealerships fail to do this, leaving customers with repossession claims on vehicles they believed they had traded in. This type of fraud can destroy customer trust and result in long-lasting damage to the dealership’s reputation.
Vin Swaps and Stolen Vehicles
One of the most shocking instances of fraudulent activity is the swapping of VIN numbers. Nefarious employees will obtain rental cars and alter their identification numbers, then sell them to unsuspecting dealerships or customers. When the vehicles are eventually processed, it often turns out they are stolen, leading to extensive investigations and legal ramifications for the dealership involved.