SPR 23-639: Reducing Vehicle Licensing and Titling Fraud

PROBLEM STATEMENT Kentucky’s Division of Motor Vehicle Licensing (DMVL) works to prevent vehicle licensing and titling fraud by monitoring vehicle transactions, transacted vehicles, and documentation associated with transactions. Fraud can take several forms. Individuals may attempt to obtain a clean title for a wrecked vehicle deemed unfit for roadway usage in another state; the vehicle may be stolen; or the vehicle may be subject to odometer manipulation or another form of deception. Preventing fraud and enforcing anti-fraud laws is mostly left up to DMVL. Currently just two DMVL employees work on these efforts. DMVL administrators believe anti-fraud efforts are substantially underfunded and want to explore changes to the program. OBJECTIVES • Identify funding mechanisms to purchase subscriptions to anti-fraud software and services • Analyze if there are ways to enhance anti-fraud prevention efforts by comparing Kentucky’s program to those in other states • Investigate funding mechanisms for enhanced anti-fraud efforts • Develop best practices and recommended procedural, regulatory, and statutory changes for the anti-fraud program