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.
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.
By one law enforcement estimate, more than 1.2 million illicit tags were sold in 2021 alone.
NBC 5’s Scott Gordon contributed to this report.
PREVIOUS REPORTS
June 1, 2022 – Police Make Bogus Tag Bust Tied to Social Media AdsMay 18, 2022 – TxDMV Names New Executive Director Amid Paper Tag CrisisMay 17, 2022 – Vehicle Used in Dallas Salon Shooting Had Paper TagMay 12, 2022 – Ads for Fake Tags Persist, Despite Facebook, TxDMV EffortsMay 4, 2022 – Texas’ Paper Tag Problem Compounded by Small Dealers Misusing ThemMay 3, 2022 – Dallas Police Shut Down Accused Fake Paper Tag DealerApril 26, 2022 – Texas House Set to Hold Paper Tag HearingsApril 14, 2022 – Texas DMV Cracks Down on Dealers Selling Temporary Paper TagsApril 13, 2022 – TxDMV Closes Inspection Loophole That Put Unsafe Cars on RoadsApril 12, 2022 – Dallas Police Go Undercover to Fight Illegal Paper TagsApril 7, 2022 – Police Warn of Fake Paper Tags Used to Cheat Car BuyersApril 5, 2022 – Texas Senate Will Investigate Illegal Paper Tag Crimes, SmugglingMarch 9, 2022 – Texas Paper Tag Crime Danger Extends NationwideMarch 5, 2022 – Texas House Will Hold Hearings on Paper Tag MessFeb. 28, 2022 – License to Smuggle: Drug Cartels and Human Smugglers Use Paper Texas Tags to EvadeFeb. 15, 2022 – Fort Worth Police Announce Special Operation Targeting Paper TagsFeb. 14, 2022 — Crash Victim’s Parents Want More Cops to Police Paper Tag FraudFeb. 13, 2022 – More Funding Need to Fight Criminals Using Bogus Paper Tags: PoliceFeb. 10, 2022 – Police Report Drop in Fraudulent Tags But Warn Crooks Are AdaptingFeb. 9, 2022 – Texas DMV Shuts Down Six More Dealers Suspected of Selling Paper License TagsFeb. 7, 2022 – TxDMV Director Resigns Amidst Paper Tag MessJan. 27, 2022 – TxDMV Takes Emergency Action to Keep Crooks From Selling Paper TagsJan. 21, 2022 – Dallas Police Operation Targets Fraudulent Paper TagsJan. 17, 2022 – Recording Shows Police Warned TxDMV of Paper Tag Security Flaw Years AgoDec. 16, 2021 – DMV Committee Recommends Fingerprinting Some Dealers to Slow Paper Tag FraudDec. 14, 2021 – Texas House Transportation Chair Vows to Stop Paper Tag FraudDec. 6, 2021 – Texas DMV Boss Deflects Blame for Paper Tag DebacleNov. 23, 2021 – Illegal Paper Tags Costing Texas Taxpayers and Toll Roads MillionsNov. 10, 2021 – Suspected Paper Tag Peddler Shut Down Tuesday, Reopens Wednesday: InvestigatorsNov. 8, 2021 – How Texas Paper Tags Became a $200M Criminal Enterprise: NBC 5 Investigates
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