Why is NMVTIS important?
Some 570,000 vehicles were affected by 2005 hurricanes. These vehicles are now perfect targets for vehicle title fraud ("brand washing").
- 1.3 million vehicles are stolen each year
- Auto fraud is a profitable business
- Auto theft alone costs consumers and insurance companies $8 billion per year.
- Only 63% of vehicles reported stolen are recovered
- Some 570,000 vehicles were affected by 2005 hurricanes. These vehicles are now perfect targets fro vehicle title fraud (“brand washing”)
- “VIN Cloning” is a growing trend
- A clear link has been demonstrated between auto theft and terrorist activities.
What is NMVTIS?
A system that allows the titling agency to instantly and reliably verify the information on the paper title with the electronic data from the state that issued the title.
Background
The Anti Car Theft Act of 1992 was enacted to deter trafficking in stolen vehicles by strengthening law enforcement against auto theft (Title I), combating automobile title fraud (Title II), preventing "chop shop" related thefts (Title III), and inspecting exports for stolen vehicles (Title IV).
Title II of the Act required the U.S. Department of Transportation (DOT) to implement a National Motor Vehicle Title Information System (NMVTIS). The Act specifies that the information within NMVTIS shall be available to jurisdictions; federal, state and local law enforcement officials; insurance carriers; and other prospective purchasers (e.g., individuals, auction companies, and used car dealers).
The Anti Car Theft Improvements Act of 1996 was signed into law on July 2, 1996. It amends the Anti Car Theft Act of 1992 to give the Department of Justice the responsibility for the information system.