State Program
The Anti Car Theft Act and its regulations require each state to perform an instant title verification check before issuing a Certificate of Title for a vehicle that an individual or other entity brings into the state. Additionally, each state is required to report data into the system and pay user fees. All states were required to be fully compliant with the Act by January 1, 2010. For further details on approaches for title verification and reporting of data, please see State Program Title Verification and Data Reporting.
BENEFITS
States Report Positive Results Through NMVTIS Participation
States that inquire into NMVTIS (i.e., conduct a title verification check) receive data on the specific vehicle, the current title, any brand information, JSI information, and whether the vehicle is reported stolen. Based on this information, the state determines whether to issue a new title. When a vehicle is retitled, NMVTIS is updated to show the current state of title. This vehicle information provides inherent benefits for a jurisdiction Participating in NMVTIS, such as enhancements for the DMV (e.g., assisting in clearing cases/alerts) and in improved customer service (e.g., ensuring the most accurate title documents are issued to residents). During FY2023, states reported additional benefits from participating in NMVTIS (details for each state can be found at IT Systems Participation Map - American Association of Motor Vehicle Administrators - AAMVA.
Junk, Salvage, and Insurance Reporting Program
In addition to state motor vehicle titling agencies, the Anti Car Theft Act requires that other third parties must report vehicle information to NMVTIS. Specifically, junk and salvage years, auto recyclers, and insurance companies have been required to report (at least monthly) vehicles deemed junk, salvage, or total loss to NMVTIS since March 31, 2009.
There are two reporting exceptions: entities that handle fewer than five vehicles per year deemed salvage (including total loss) or junk; and entities that currently report the required data elements to the state in which they are located, with the state providing the required information to NMVTIS. As reported in the State Program/Benefits section of this publication, states continue to rely on JSI data to inform business decisions in their state titling processes.
Four Data Consolidators provide data reporting services to businesses and other entities required to report to NMVTIS:
- AAMVA Single VIN Reporting Service
- Audatex
- Auto Data Direct, Inc. (ADD)
- ISO ClaimSearch Solutions
States Reporting on Behalf of JSI Entities
During prior reporting periods, AAMVA worked with states to identify their options in reporting to NMVTIS on behalf of junk and salvage reporting entities. Insurers were excluded from this effort. Three options were considered:
- State becomes a Data Consolidator under contract with AAMVA;
- State contracts with an existing Data Consolidator, as in the Georgia/Tennessee model; and
- NMVTIS serves as the single point of reporting for all junk and salvage businesses.
Implementing the third option—for NMVTIS to serve as the single point of reporting—requires legislative or regulatory changes to state reporting obligations for junk and salvage businesses, as well as technical changes for states and the system. This approach would enable businesses to report once to NMVTIS. NMVTIS would then provide the reported data to the relevant state for its use. Further analysis of this option is necessary. A pilot program to enable states to report on behalf of their reporting entities will be revisited once the system application rewrite is implemented. In the interim, states continue to have the option to contract with an existing reporting service (Tennessee and Georgia models). The longer-term option, in which the state becomes a data reporting service under contract with AAMVA, remains under review.
By capturing VINs of vehicles that are deemed junk, salvage, or insurance total loss, NMVTIS helps prevent fraud and theft and protects consumers from unsafe vehicles. States and law enforcement rely on NMVTIS data to obtain full vehicle life cycle histories
Consumer Access Program
The Anti Car Theft Act requires NMVTIS information to be made available to prospective purchasers, including businesses that purchase used automobiles or commercial consumers. NMVTIS information is purchased through a third-party entity called Approved NMVTIS Data Providers. Consumers include individuals and commercial entities. Some commercial consumers include lenders who are financing the purchase of automobiles (and in many cases own them as the lien holders) and automobile dealers. Lenders and dealers are integral components of the automobile purchasing and titling process, and their ability to avoid fraud also protects individual consumers.
Law Enforcement Benefits
NMVTIS Provides Data Helpful to Investigations
The NMVTIS Law Enforcement Access Tool (LEAT) provides law enforcement and state DMV investigators with secure access to information that assists in the investigation of vehicle crimes and other criminal activity. These crimes include vehicle theft and VIN cloning, vehicle finance fraud, vehicle title and brand fraud; they may also include violent crimes such as smuggling operations (human trafficking, narcotics, weapons, and currency) and other fraud activities. This access can also assist investigating officers in identifying vehicle theft rings, other criminal enterprises, and vehicles used in other related crimes.
This search tool also allows users to view junk and salvage data submitted by businesses and individuals who are required to report to NMVTIS, as well as providing information regarding these entities’ compliance with NMVTIS. This is a valuable resource for agencies investigating criminal activity with a vehicle connection.
Fraud Detection and Remediation
AAMVA’s Fraud Detection and Remediation (FDR) Training Program
The FDR training program provides in-depth training to educate attendees on the latest techniques in fraud deterrence and detection. The program provides detailed examples and explanations of document authentication techniques to identify security features of motor vehicle titles, personal identification, and supporting documents. FDR also contains a specific training module titled “NMVTIS Investigation Tools,” which contains information on how motor vehicle agencies can use NMVTIS to detect fraud and stolen vehicles; how to use NMVTIS LEAT functions; what information NMVTIS LEAT contains; and how to gain access. FDR is an invaluable resource for states in their fight against fraud to enhance program and product integrity.
The NMVTIS module was developed and added to the FDR training program during the FY2015 reporting period.