Odometer Rollback: How to Spot and Prevent Odometer Fraud
Samson Kiarie
Last update on:
December 8, 2025 1:01 PM
Published on:
TL;DR
Mileage manipulation is still occurring, even in vehicles with digital odometers. Recent CarFax data show that more than 2.14 million vehicles on U.S. roads may have had their mileage fraudulently reduced, costing buyers an average of $4,000 per vehicle. NHTSA estimates more than 450,000 vehicles with incorrect mileage are sold every year, creating over $1 billion in losses.
This guide explains how odometer fraud works, how to spot it, and how tools like Timeero help fleets maintain accurate, independent mileage records.
Many car buyers assume digital dashboards solved odometer tampering. According to Emilie Voss, Director of Public Relations at Carfax, that misconception is widespread — and wrong. Digital odometers may look more secure, but they’re just as vulnerable to manipulation through software and diagnostic tools.
If you're in the market for a used vehicle or you manage company cars, understanding how rollback happens — and how to detect it — is essential. Odometer fraud affects resale value, maintenance schedules, and long-term operating costs. And because most buyers never suspect tampering, the damage often shows up months after the purchase.
This article breaks down the basics of odometers, how rollback works, how to spot red flags, and what steps you can take to protect your vehicles. We’ll also show you how using the best mileage trackers can dramatically reduce odometer-related fraud and misuse.
Leave the outdated odometer behind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.
How common is odometer fraud today?
Odometer rollback isn’t rare — it continues to show up in used-car sales across the country.
States with consistently high fraud rates include California, Texas, Florida, New York, and Illinois.
Digital odometers didn’t eliminate rollback, but just changed the tools. Verifying mileage through service records, history reports, or independent GPS tracking is still the best way to confirm accuracy.
Leading states in odometer fraud
Why odometer rollback happens — and why sellers do It
Odometer rollback is simple, fast, and profitable — which is why it continues to show up in the used-vehicle market. Lower mileage means higher resale value, and the difference can be thousands of dollars.
For example, a 2013 Toyota Camry with 200,000 miles might sell for around $7,800. The same vehicle showing 100,000 miles could be listed closer to $12,000. That mileage gap represents more than $4,000 in artificial profit, which explains why dishonest sellers are tempted to manipulate the numbers.
Modern rollback doesn’t require mechanical skill. With inexpensive OBD tools and mileage-adjusting software, someone can plug into a vehicle’s onboard systems and rewrite the odometer in minutes. This shift from physical tampering to electronic manipulation makes rollback harder to detect and easier to scale.
While many cases involve private sellers or small dealerships, rollback has also appeared in larger operations. One class-action lawsuit, for example, alleged that a fleet partner working with FedEx replaced gauge clusters to hide true mileage before resale — claims the company denies. Regardless of the outcome, cases like this show how rollback can extend beyond one-off transactions.
The impact on buyers is significant. A car that appears to have low mileage may actually have far more wear on major components, leading to earlier brake jobs, tire replacements, engine issues, and a much lower resale value than expected. In most cases, buyers don’t realize the problem until maintenance costs start piling up.
Without careful verification, many buyers and even businesses managing fleets never see the real numbers until it’s too late.
How odometer rollback happens
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’s mileage. These tools were created to help mechanics diagnose issues, but shady sellers use them to alter odometers illegally.
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:
1. 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.
2. 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.
3. 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.
4. 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.
5. 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’re not far-fetched. Documented court cases of employees rolling back company-owned odometers are rare, but the tools to do it are widely available.
So, how can you reduce the risk of misuse and inflated mileage claims? One practical step is to use a mileage tracking app like Timeero to create an independent, GPS-based mileage record that doesn’t rely on the vehicle’s odometer.
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?
Timeero doesn’t replace legal protections at the point of sale, but it does reduce vehicle misuse and inflated reimbursement claims by creating an accurate, GPS-based mileage record that employees can’t easily manipulate.
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. Digital odometers can be altered with OBD or OEM diagnostic tools, which allow mileage to be rewritten electronically.
What is odometer rollback?
It’s the act of lowering the mileage displayed on a vehicle to make it look less used than it really is.
Can odometer rollback be detected?
Often, yes. Inconsistencies in service records, vehicle history reports, ECU data, or signs of unusual wear compared to the mileage are common red flags.
What are the penalties for odometer tampering?
Federal penalties can reach $10,000 per violation in civil fines, and criminal charges may include fines up to $250,000 and up to three years in prison.
Can businesses prevent odometer-related fraud?
You can’t stop a previous owner from tampering, but you can protect your fleet with independent mileage logs. Apps like Timeero create GPS-verified mileage records that make falsifying mileage much harder.
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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