The Texas DMV Board adopted a plan for stiffer background checks on people applying for Texas car dealer licenses Thursday, including fingerprinting applicants.
This major change stems from a seven-month-long NBC 5 investigation which revealed how a lack of thorough vetting by the Texas DMV allowed criminals to become licensed car dealers and then sell temporary license plates for millions in black market profits.
NBC 5 Investigates’ reporting revealed the DMV did not fingerprint people applying for car dealer licenses – or meet with them in person before giving them a license.
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This allowed crooks, some using stolen identities, to obtain dealer’s licenses and gain access to the DMV’s temporary tag system. Once inside they could print temporary tags and sell them illegally.
Our investigation showed show some dealers that sold illicit tags were willing to enter fake names and addresses into the state’s registration system, creating tags for what police call “ghost cars” that are harder to track.
"Fraudsters are going to do fraud no matter what," said Sgt. Joe Escribano, who pushed for years for DMV to crack down. "But at least you (now) have some measures in place."
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The change requires owners who apply for car dealer licenses to submit fingerprints and existing owners when they renew their licenses.
By one law enforcement estimate, more than 1.2 million illicit tags were sold in 2021 alone.
The DMV is working on other changes as well, including allowing police to access their dealer database to conduct fraud investigations.
NBC 5's Scott Gordon contributed to this report.
PREVIOUS REPORTS
- June 12, 2023 - Gov. Abbott signs law eliminating paper license plates in Texas
- May 24, 2023 - Bill to Eliminate Paper License Plates in Texas Passes Texas Senate
- March 27, 2023 - Texas DMV's New Paper Tag Design Easily Counterfeited, Police Say
- Nov. 17, 2022 - Texas DMV Redesigns Paper License Tags to Include New Security Features
- Nov. 15, 2022 - Police Searching for Paper Tagged 'Ghost Car' in Deadly Grand Prairie Chase
- June 1, 2022 - Police Make Bogus Tag Bust Tied to Social Media Ads
- May 18, 2022 - TxDMV Names New Executive Director Amid Paper Tag Crisis
- May 17, 2022 - Vehicle Used in Dallas Salon Shooting Had Paper Tag
- May 12, 2022 - Ads for Fake Tags Persist, Despite Facebook, TxDMV Efforts
- May 4, 2022 - Texas' Paper Tag Problem Compounded by Small Dealers Misusing Them
- May 3, 2022 - Dallas Police Shut Down Accused Fake Paper Tag Dealer
- April 26, 2022 - Texas House Set to Hold Paper Tag Hearings
- April 14, 2022 - Texas DMV Cracks Down on Dealers Selling Temporary Paper Tags
- April 13, 2022 - TxDMV Closes Inspection Loophole That Put Unsafe Cars on Roads
- April 12, 2022 - Dallas Police Go Undercover to Fight Illegal Paper Tags
- April 7, 2022 - Police Warn of Fake Paper Tags Used to Cheat Car Buyers
- April 5, 2022 - Texas Senate Will Investigate Illegal Paper Tag Crimes, Smuggling
- March 9, 2022 - Texas Paper Tag Crime Danger Extends Nationwide
- March 5, 2022 - Texas House Will Hold Hearings on Paper Tag Mess
- Feb. 28, 2022 - License to Smuggle: Drug Cartels and Human Smugglers Use Paper Texas Tags to Evade
- Feb. 15, 2022 - Fort Worth Police Announce Special Operation Targeting Paper Tags
- Feb. 14, 2022 -- Crash Victim's Parents Want More Cops to Police Paper Tag Fraud
- Feb. 13, 2022 - More Funding Need to Fight Criminals Using Bogus Paper Tags: Police
- Feb. 10, 2022 - Police Report Drop in Fraudulent Tags But Warn Crooks Are Adapting
- Feb. 9, 2022 - Texas DMV Shuts Down Six More Dealers Suspected of Selling Paper License Tags
- Feb. 7, 2022 - TxDMV Director Resigns Amidst Paper Tag Mess
- Jan. 27, 2022 - TxDMV Takes Emergency Action to Keep Crooks From Selling Paper Tags
- Jan. 21, 2022 - Dallas Police Operation Targets Fraudulent Paper Tags
- Jan. 17, 2022 - Recording Shows Police Warned TxDMV of Paper Tag Security Flaw Years Ago
- Dec. 16, 2021 - DMV Committee Recommends Fingerprinting Some Dealers to Slow Paper Tag Fraud
- Dec. 14, 2021 - Texas House Transportation Chair Vows to Stop Paper Tag Fraud
- Dec. 6, 2021 - Texas DMV Boss Deflects Blame for Paper Tag Debacle
- Nov. 23, 2021 - Illegal Paper Tags Costing Texas Taxpayers and Toll Roads Millions
- Nov. 10, 2021 - Suspected Paper Tag Peddler Shut Down Tuesday, Reopens Wednesday: Investigators
- Nov. 8, 2021 - How Texas Paper Tags Became a $200M Criminal Enterprise: NBC 5 Investigates
