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Information critical to mitigate vehicle fraud

Johannesburg - Hijacking, vehicle theft, cloning of vehicles and "chop shops" are by no means a new phenomenon, said Kriben Reddy, director: business development auto information solutions at TransUnion.

"These tried and tested methods have been in use for many years by criminals. However, the magnitude of these crimes is on the increase, and as a result the negative impact is being felt by the automotive industry more than ever," he said.

"The massive financial implications of stolen, cloned and "chopped" cars – from the perspective of finance houses, dealers and consumers alike – is the most pressing problem."

In addition, these vehicles are often used in the perpetration of further criminal activities, creating a vicious cycle that needs to be terminated.

Mitigating the risks associated with vehicle theft and fraud requires information on both vehicles and potential drivers to be readily and conveniently available.

He said dealers need to quickly assess the risk and the pedigree of any second-hand vehicle and verify and vet the identity of potential purchasers of both new and pre-owned vehicles.

Consumers, on the other hand, need information at their fingertips to verify the vehicle and its value to ensure they are protected from purchasing a "cloned" or otherwise fraudulent vehicle.

READ: Cloned cars part of SA's R8.5bn vehicle scams

TransUnion's 1Check app, for instance, has a vehicle verification database of 18 million vehicle records, to assist in the prevention of the sale, auction, registration, financing and insuring of suspect or stolen vehicles.

The app brings together a host of data throughout the lifecycle of a vehicle, from its manufacturing and importation right through to final sale and destruction.

A record of the VIN number, engine number, colour and description is collated with any information on previous financing, microdot information and more. This is then matched to the key identifiers of the vehicle.

In addition, police reports are pulled in to provide information on whether the vehicle has been flagged as stolen or as a vehicle of interest.

Any discrepancies or warning flags will be immediately highlighted.

Another app called CarValue enables potential purchasers to conduct a full verification of the vehicle and provides information as to the book value of the car.

- Fin24

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