For many in the auto business, whether as a dealer or mechanic, the idea of auto fraud has never even crossed their minds. Since it is such a reputational business, most auto business owners strive to create customers for life. But, that is not the case for all in the auto business. Indeed, there are well over 120,000 incidents of auto fraud reported in 2020 alone, representing hundreds of thousands of dollars in cumulative losses. Though, where does Ohio rank in incidents of auto fraud and scams.
Types of auto fraud and scams
Like other types of frauds, auto fraud has many types, like double charging or just overcharging for services, like price gouging. It also includes making unnecessary repairs, faking malfunctions or general vehicle issue and charging for new parts when using used parts (or not even replacing the reported broken part). This can be done by both mechanics and dealerships that do auto repairs. Though, car dealerships can do other fraudulent things, like selling useless warranties or unnecessary products, lying about a customer’s credit score and even just artificially charging extremely high interest rates.
Auto fraud rankings
The insurance marketplace, Clearsurance, complied an auto fraud data list from the Federal Trade Commission. And, from that data, 24/7 Wall St. ranked states by their incidents of auto frauds and scams.
Ohio ranked number 7 with 304 auto fraud cases per 1 million residents, with over 3,500 incidents of auto fraud. Nevada ranked number with over 346 cases per million residents. For comparison, states generally reported between 140 and 250 cases per million residents in 2020, which is median.
Like many other professions, Portage County, Ohio, auto dealers and mechanics operate on trust and reputation, and if that trust or reputation is broken, it can destroy a business. This is why when an auto dealer or mechanic faces an accusation of fraud, it is important to craft a quick criminal defense. Otherwise, even an accusation fraud can be detrimental to one’s livelihood.