Odometer Rollback: How to Spot and Prevent Odometer Fraud
Samson Kiarie
Last update on:
October 25, 2024 6:28 AM
Published on:
According to Emilie Voss — Director of Public Relations for Carfax, many car buyers think odometer rollback vanished with the invention of digital odometers. This idea couldn’t be farther from the truth. Odometer rollback continues to be seen year after year, making it difficult for buyers to find genuinely good ‘second-hand’ motor vehicles.
A recent Carfax article reported that cases of odometer fraud rose 7% in 2022. Along with this increased statistic, purchased rolled-back-vehicles lost an average of $4,000 in value. Car buyers are often unaware that they have been scammed, so if you’re in the market for a used car, our guide will show you how to avoid fraudulent dealers.
If you’re worried that your employees are tampering with your company vehicle’s odometer readings for their benefit, this guide is for you. We’ll shed light on everything you need to know about odometer rollback. In this article, you’ll explore how to spot and prevent odometer fraud and learn who to contact if you fall prey to odometer scams.
We’ll also show you how using the best mileage trackers puts an end to this sneaky practice.
Leave the Outdated Odometer Behind
Embrace Accurate, Real-time Monitoring of Employee Mileage and Locations.
Before we get to the gist of this article, let’s get the basics out of the way. Why is a vehicle’s odometer reading so important?
The answer is simple: an odometer reading tracks the total miles a car has been driven throughout its lifetime. It’s a good indicator of wear and tear on a car. The higher the mileage, the greater the wear on a vehicle’s components. Consequently, a high-mileage vehicle is worth much less than an identical low-mileage model.
However, a vehicle’s value doesn’t depend solely on its mileage. How the miles were accumulated makes a difference too. For example, driving in highway traffic impacts the vehicle differently than driving in stop-and-go city traffic. The latter has been found to cause more damage to the vehicle’s braking system.
Additionally, the car’s previous accident and maintenance history records are taken into account when calculating car value.
What Is A Car Odometer, And How Does It Work?
An odometer is a mechanical or digital device that clocks the distance a vehicle travels. The odometer logs every mile the car travels in forward and reverse gear.
Traditional, Mechanical, Or Analog Odometers
Mechanical odometers, or traditional odometers, were all the rage until the early 2000s. These days, you won’t find any newer vehicle models with this type of odometer.
As the name suggests, traditional odometers are mechanical, comprising a set of gears and a series of cables. The cables connect the vehicle transmission to the odometer. When the vehicle moves, it spins the cables, turning a set of gears connected to a numbered dial to log the mileage.
Digital Odometer
Digital odometers dominate the market today. This type of odometer replaces the series of gears and cables with magnetic or optical sensors tuned to record the number of times the car transmission output shaft turns.
The sensor relays the information to the vehicle’s onboard computer or the engine control unit (ECU). This unit uses an algorithm to calculate the distance traveled by the vehicle based on the size of the tires and their rotations.
What Does Odometer Rollback Mean?
Odometer Rollback is when a car’s odometer has been fraudulently tampered with. It’s sometimes referred to as “busting miles” in the U.S. or “clocking” in Canada, the U.K., and Ireland. Individuals commit odometer fraud to make it seem like a vehicle has lower mileage than it really does.
Why Do Dealers and Sellers Rolled Back Odometers?
Often, dealers will roll back a vehicle’s odometer to artificially increase its value. For example, a 2013 Toyota Camry with 100,000 miles might be valued at $12,000. The same vehicle/model with 200,000 miles on it might fetch a significantly lower value of $7,800.
If a dealer rolls a 200,000-mile Camry’s odometer back to 100,000 miles, they earn an extra $4,200 in profit. It’s easy money for the dealer, but unwary buyers feel the pinch.
Unsuspecting buyers purchase the vehicle at top-dollar, all while under the impression that the car is in prime condition and will provide years of trouble-free service. Unbeknownst to them, the car has more wear and tear than they are aware of. In no time at all, cosmetic and functional damage begins to appear.
Within months of purchase, irritating breakdowns become more prevalent, causing buyers to incur maintenance costs such as tire and oil changes sooner than hoped. The buyer soon learns that the vehicle’s resale value is a fraction of what they first thought.
How Odometer Rollback Happens
You don’t need to be a mechanic to recalibrate a vehicle’s odometer. With a few bucks and basic car computer knowledge (which can be acquired by watching YouTube videos), you can easily roll a vehicle’s odometer back or forward.
Rolling back an odometer can be as simple as plugging in an Original Equipment Manufacturer (OEM) or On-Board Diagnostic (OBD) tool and resetting the car mileage. Manufacturers of these tools create them to enable mechanics to diagnose car issues. However, shady dealers and sellers use them to alter odometers illegally.
Rise Of Odometer Rollback Fraud: Why Do Dealers Do It?
Odometer tampering is an easy and profitable illegal practice. News headlines showing police officers arresting odometer fraudsters are more common now than ever before, and big corporations have been caught in the act too.
According to the National Highway Traffic Safety Administration (NHTSA), over 450,000 vehicles fitted with illegally altered odometer readings are sold each year. The crime costs used car buyers in the U.S. a staggering $1 billion each year.
A study by Carfax revealed that more than 1.9 million cars on U.S. roads have a rolled-back odometer, but this staggering statistic alone doesn’t tell the whole story.
The table below shows the leading states in odometer fraud:
Leading states in odometer fraud
How To Detect Odometer Fraud: Signs Of Odometer Rollback
Detecting false odometer mileage can be difficult.
Unfortunately, digital odometers have no visible moving parts, which makes it harder to detect if they have been tampered with.
If you’re thinking about buying a used vehicle, you’ll want to first check if the car has ever been reported for odometer fraud. Of course, even if the car has no previous reports, this doesn’t guarantee that the odometer reflects an accurate mileage reading.
If you suspect odometer rollback fraud, there are steps you can take to protect your vehicle purchase:
Compare Mileage Records With The Odometer Reading
Check the title and compare the mileage records with the mileage shown on the vehicle’s odometer. The car’s maintenance records and inspection records make it easy to check for signs of odometer rollback fraud. The vehicle’s odometer readings should be included in these reports.
Go Through A Vehicle History Report (VHR)
A vehicle history report (also known as a VIN check) is a detailed report that provides information about a used car’s condition. This history report is beneficial in more ways than one. A VIN check shows the vehicle’s damage history, lien status, as well as the registration history that includes odometer readings.
With this report in hand, you can compare the reported mileage with the current odometer readings. This data also gives you a chance to check if the pattern of mileage driven over the years is logical.
Any inconsistencies in odometer readings should be considered a red flag. If the seller doesn’t have this report, you’ll need the vehicle identification number (VIN) to obtain it online.
Check For Physical Tampering In Manual Odometers
There are a few things to be mindful of when checking a manual odometer for signs of rollback.
First, you will need to inspect the odometer’s readout. The numbers should be readable, there should be no gaps between them, and they shouldn’t seem crooked. If the odometer’s numbers are misaligned, it’s likely the readings have been altered.
Next, you will need to inspect all the dashboard screws and clusters. Check to see if the hardware is original and whether they match the ones shown in the owner’s manual.
Does the Vehicle’s Appearance Match its Odometer Reading?
Compare the vehicle’s appearance with the reading on the odometer. It is not always easy to determine if the odometer reading matches the vehicle’s wear and tear. Minor damage can be repaired to some extent to deceive the buyer.
Some signs of wear and tear are more obvious than others. For instance, the gas, brake, and clutch pedals can indicate the vehicle’s actual condition. Be sure to examine the tires, too - if the odometer displays 20,000 or less, the vehicle should still have its original tires.
Visit Your Trusted Mechanic For A Detailed Inspection
For digital odometers, consult a car servicing shop if you spot red flags. If a vehicle has low mileage, but the interior is faded and worn, ask a trusted mechanic to inspect the ECU records.
A vehicle’s ECU records the pulses captured by the magnetic or optical sensor and stores the correct readings. Car servicing shops normally have the proper tools to determine the vehicle’s true mileage if you suspect fraudulent acts.
Is Odometer Rollback Legal?
No, odometer rollback isn’t legal. Odometer tampering that misrepresents a vehicle’s condition is considered a crime in the U.S. The practice has been illegal since 1972. The government introduced the Truth in Mileage Act (TIMA) in 1986, which requires sellers to disclose the vehicle’s mileage on the title.
Due to risks involved and the costs incurred by unwary American buyers, the federal government was prompted to declare odometer tampering a federal crime under Title 49 U.S. Code 32703. The law states categorically that no person should alter or disconnect the odometer to adjust its readings.
Federal and state laws frown upon odometer fraud. Laws prohibit a seller from knowingly making a false odometer readings claim, regardless of whether they tampered with the odometer themselves or are aware that another person did it.
If an individual commits odometer fraud, they may receive one of the punishments below:
Civil Penalties
Odometer tampering isn’t taken lightly, the penalties for a conviction of federal odometer fraud charges can be costly and severe. In the case of civil penalties, fines can go up to $10,000 for each violation, up to a maximum penalty of $1,000,000.
If the crime involves a corporation, the perpetrators can be fined individually; the company won’t be exonerated, either. Not to mention, any officers involved as well as the corporation could be subject to additional lawsuits by the state government and the Attorney General.
Criminal Penalties
Any person who knowingly and willfully engages in odometer scams can face fines up to $250,000 and up to three years in prison. Keep in mind, criminal penalties are different from civil penalties.
When addressing the penalty for odometer tampering, it’s important to note that these charges are often accompanied by other offenses like false representation of vehicle mileage.
Unsurprisingly, individuals who alter odometer readings tend to frequently modify or forge documents that contain mileage records for the vehicle. This is treated as a separate offense in the eyes of the law.
How To Report Odometer Fraud
If you’re a victim of odometer fraud, you should report the case. Reporting odometer fraud helps nip the act in the bud. When the case is registered, the issue becomes a permanent part of the vehicle’s records.
Not only will reporting odometer fraud help out other car buyers, but the person or dealership that committed fraud will be held accountable for their illegal actions. They can be punished by law for their criminal behavior.
Agencies that deal with odometer rollback claims differ from state to state. To report odometer fraud, follow the steps below:
Reach out to your local law enforcement agency, as they can inform you of your next steps.
Report suspected odometer fraud to your state’s consumer protection agency.
Contact an experienced attorney who specializes in dealing with odometer fraud cases.
Can Employees Roll Back A Company Vehicle’s Odometer?
Picture this - a delivery driver takes the longer, more scenic route, and they miss a delivery. If this mishap puts their job on the line, what is preventing them from rolling back the car’s odometer to cover their tracks? Nothing.
Imagine if a company is preparing to auction off old company cars, and an employee has their eye on the vehicle they regularly drive. With the availability of OBD tools, the employee can easily roll forward the car’s mileage to purchase it at a significantly lower price.
Since it’s becoming so easy for anyone to tamper with a digital odometer, have any employees rolled company cars’ odometers forward or backward?
Timeero automatically tracks business mileage when an employee exceeds a predefined speed threshold.
While these cases are hypothetical, they could very easily happen. To date, there are no reported cases, but that doesn’t mean it’s entirely out of the question.
So, how can you prevent rogue employees from rolling back vehicle mileage? It may be tricky to accomplish, but you can give Timeero’s mileage tracking tool a shot.
Record Mileage Accurately With Mileage Tracking Apps
The best mileage tracking apps, such as Timeero, generate mileage records that are difficult to dispute. Using a mileage tracking app helps prevent odometer fraud while also streamlining employee reimbursement.
Let’s explore how Timeero assists in preventing Odometer Rollback.
Automatic Mileage Tracking
The Timeero mobile app uses motion-detection technology to track mileage when the vehicle exceeds a predefined speed.
Timeero only tracks mileage when:
The vehicle exceeds a preset speed threshold
The driver is on the clock, which eliminates privacy concerns and after work tracking
So, how does Timeero prevent odometer fraud?
Although Timeero doesn’t necessarily discourage odometer fraud related to price gouging, it will decrease vehicle misuse associated with inaccurate mileage logs.
Since the app tracks mileage automatically, an employee can’t falsify mileage logs to claim a higher reimbursement. Plus, Timeero stops tracking mileage once the user clocks out, which is excellent for privacy and compliance.
Route Replay
Earlier, we mentioned a case where an employee rolled back the odometer to erase their trail. Adding Timeero’s route replay to your tech stack makes it easy to catch dishonest employees.
Timeero’s route replay allows you to monitor employee movement during work hours.
As the name suggests, this feature allows you to recreate an employee’s driving route.
You can see where an employee was during the workday and open the breadcrumbs to zero in on details such as driving speed, total miles traveled, and the time spent at each location.
Coupled with the mileage tracker, Timeero’s Route Replay feature can hint at whether an employee has altered the vehicle’s odometer readings.
Segmented Tracking
If you have a field sales team, there are more pressing issues to worry about than odometer fraud. Tracking the time they spend with each customer is a good case in point. Ideally, each sales rep should spend quality time with potential clients to earn their business.
Typically, sales reps clock in when they arrive at a client’s location and clock out as they leave, which can be time-consuming. Timeero’s segmented tracking saves your sales rep from this unnecessary hassle. With Timeero, sales reps only need to clock in once, complete business tasks, and clock out when they are done for the day.
Segmented Tracking divides an employee’s driving route into individual chunks of time. Each point on the map displays details such as distance covered, time spent traveling, and how much time was spent at client locations. This feature provides you with a detailed visual representation of an employee’s entire workday at a glance.
Timeero’s Segmented Tracking provides valuable insights into an employee’s daily travels.
Suggested Mileage
Generally, the more miles a vehicle covers, the more wear and tear your vehicle will experience. Timeero’s suggested mileage feature evaluates past trips to propose the shortest distance to each destination. It minimizes the distance the vehicle covers, thus reducing maintenance costs. Learn more in our full Timeero review.
Timeero’s Additional Features
GPS location tracking
Time tracking with geofencing and facial recognition
Commuter Mileage
Employee scheduling
Message Blast
Avoid Odometer Fraud With The Right Tools
Once you've found the perfect vehicle for your business needs, you must protect its integrity and value. This is where a top-tier mileage tracking app like Timeero steps in.
By accurately tracking and recording every mile driven, Timeero safeguards your business assets and ensures peace of mind.
Embrace the power of the right tools and best practices – with Timeero, you’re always a step ahead in the game against odometer rollback and misuse.
FAQ: Odometer Rollback
Is It Possible to Roll Back a Digital Odometer?
Yes, it’s possible to roll back a digital odometer with an OEM or OBD tool.
What is Odometer Rollback?
Odometer rollback is the act of altering odometer readings to make the vehicle look like it clocked fewer miles than it did.
Can Odometer Rollback Be Detected?
Yes, you can detect odometer rollback in multiple ways, such as by inspecting the vehicle history report or comparing mileage records with the mileage shown on the odometer.
What Is the Penalty for Odometer Tampering
The civil penalty for odometer fraud is $10,000 for each violation, whereas the criminal penalty can be up to $250,000.
Prevent odometer fraud and monitor your team’s movements in real-time
Samson is a mathematician turned content marketer specializing in SaaS and Tech content. He focuses on the practical aspects of software systems while keeping abreast of the industry’s cutting-edge principles to create informative and engaging content. When he’s not writing, Samson spends time playing or watching soccer.
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