21 July, 2023
Members beware: Increasing reports of scams, fraud, theft and unclaimed goods
The MTA is urging its members to be extra vigilant as Australia’s high inflation rate and subsequent cost-of-living pressures have created a fertile environment for criminal activity and consumer behaviour that can leave businesses in the motor industry thousands of dollars out of pocket.
GM Membership and Industry Engagement Graham Cawley said there has been a distinct increase in the number of MTA members reporting scams, fraud, theft and unclaimed goods in recent times.
As a result, MTA members are being encouraged to review the information below and get in touch to discuss how they can best protect their businesses against unscrupulous criminals and high-risk work.
Scams
Scams come in a wide variety of shapes, sizes, and sophistication. Some are very obvious and easy to spot, while others - like those that stole around $US37 million from one of the world’s largest vehicle manufacturers and $65,000 from a Perth motor vehicle dealership – can slip through the smallest of cracks.
Fraud
While there are many different ways deception and misrepresentation can be used against businesses in the motoring industry, the most prevalent type of fraud being reported by MTA members right now is that of Odometer Tampering.
New vehicle delivery delays caused by COVID-19 global supply limits continues to drive unusually high demand for second-hand vehicles. It appears the resulting high prices have incentivised some to “wind back” odometers in an attempt to increase sale prices to dealers and consumers.
NOTE: The MTA continues to lobby the Department of Transport to help reduce this crime by making a vehicle’s historical odometer readings available to prospective buyers. The DOT currently has scheduled the project to occur “before 2027”.
Theft
As the cost-of-living pressures continue to mount, criminals are finding new ways to fund their activities, one of which appears to be the theft of valuable vehicle components.
MTA members are reporting increases in customers who have had a variety of vehicle parts stolen, one of the most common being catalytic converters - presumably for the platinum, palladium, rhodium and other precious metals they contain.
Unclaimed Goods
When a customer does not pay for work carried out and abandons their vehicle or other goods, the current laws make it very costly, time-consuming, and frustrating for a business to dispose of those goods to try to recover their costs.
As household budgets get stretched and more Australians struggle to make ends meet, the unfortunate reality is some people will delay essential vehicle maintenance and repairs until major work is required. If a customer cannot afford to pay for major repairs, the risk of them abandoning the vehicle is increased – especially if they are not able to be easily contacted.
The MTA continues to work on regulatory changes to help but in the meantime, members can access legally approved job cards and other help that minimise the risks of unclaimed goods.
Would you like to share your insights or get more details and advice about scams, fraud, theft, and unclaimed goods? Contact
your MTA Account Manager now.
