Vehicle Title Fraud: How to Spot and Avoid Scams

Buying a used vehicle in Alaska can be a smart financial move, but only if the paperwork is in order. Vehicle title fraud is an unfortunately common scam that targets unsuspecting buyers with forged or altered documents. Knowing how to recognize fraudulent titles and verify their authenticity can save you from costly legal and financial troubles.

What Is Vehicle Title Fraud?

Vehicle title fraud occurs when someone forges, alters, or misrepresents the official title of a vehicle. These scams often involve tampered odometers, concealed salvage histories, or outright fake titles. In some cases, sellers may try to offload stolen vehicles using fraudulent paperwork.

This type of fraud can lead to serious issues such as loss of the vehicle, legal liability, and inability to register or insure the car in your name.

Common Types of Title Fraud

Understanding the different types of title fraud helps you spot them early:

• Title Washing: Removing "salvage" or "rebuilt" status from a vehicle’s title by transferring it between states with lenient regulations.
• Fake or Forged Titles: Creating entirely false documents or altering legitimate ones to hide past damage or liens.
• VIN Cloning: Using the Vehicle Identification Number (VIN) from a legally registered vehicle on a stolen one to mask its identity.
• Lien Fraud: Selling a vehicle that has an unpaid lien without disclosing the financial obligation to the buyer.

Warning Signs of a Fraudulent Title

There are several red flags to watch for when reviewing a title:

• Mismatched VIN numbers between the title and the vehicle
• Signs of tampering or alterations on the document (white-out, erasure, different fonts)
• Incomplete or missing seller information
• Missing signatures or notarization if required
• Titles marked as “duplicate” or “replacement” without a clear reason

If you notice any of these, it’s best to walk away or consult the Alaska DMV before proceeding.

How to Verify a Title’s Authenticity in Alaska

To protect yourself from title fraud, follow these steps when buying a used vehicle:

1. Match the VIN

Always compare the VIN on the title to the one found on the dashboard, door frame, and engine block. All numbers must match exactly.

2. Check the Title Status

Use the National Motor Vehicle Title Information System (NMVTIS) to check for title brands like "salvage," "rebuilt," or "flood damage." This database pulls from state DMVs, insurance companies, and junkyards.

3. Request a Vehicle History Report

Services like Carfax or AutoCheck can reveal past accidents, title changes, and odometer rollbacks. Compare this with what the seller tells you.

4. Confirm Lien Release

If a lien is listed on the title, ensure there's a lien release document signed by the lender. For more on this, see How to Handle Lien Releases for Alaska Titles.

5. Validate Title With the DMV

If you’re uncertain, take the title to your local DMV for verification. They can confirm its authenticity and advise if anything looks suspicious.

Best Practices for Buying a Used Vehicle

Along with verifying the title, consider the following precautions:

• Avoid cash-only sellers who rush the transaction.
• Be wary of prices that seem too good to be true.
• Ask to see the seller’s ID and ensure it matches the name on the title.
• Never agree to “take the car now, title later” arrangements.

For a full checklist, visit Buying a Used Car in Alaska - Title Checklist.

If You Suspect Title Fraud

If something doesn’t feel right:

1. Don’t sign or pay for anything.
2. Report the issue to the Alaska DMV.
3. File a complaint with the local police if criminal intent is suspected.

Keeping detailed records of the transaction can be helpful if you need to take legal action.

Staying vigilant and informed is your best defense against vehicle title scams. Whether you’re buying from a dealer, private seller, or auction, always verify the title thoroughly. The extra effort can protect you from expensive consequences later.