France’s ghost car scandal that allowed one million illegal vehicles onto the roads
France’s Ghost Car Scandal Exposes Millions of Unregulated Vehicles
France faces a significant vehicle registration fraud, with over a million cars operating without proper documentation. This scam, uncovered by the state auditor, has caused hundreds of millions in lost tax revenue and fines, according to a report released on Thursday. The scandal also raises safety concerns, as faulty or unregistered vehicles have been permitted onto roads, increasing risks for drivers and pedestrians.
The System’s Flawed Reform
The fraud began in 2017 when the French government partially privatized the vehicle licensing process. This decision aimed to streamline the registration system, which had long been criticized for its slow pace. Instead of state officials handling all paperwork, car dealerships were granted direct access to the SIV registry to issue documents for buyers. However, the reform relied heavily on trust, leaving gaps that unscrupulous actors exploited.
Thousands of fraudulent operators took advantage of this shift. By creating dummy companies, they manipulated the SIV system to register vehicles under false identities. These “ghost dealerships” allowed for easy bypassing of checks, enabling vehicles and their owners to become untraceable. As a result, the registry became a tool for various crimes, from minor infractions to organized fraud, according to the Cour des Comptes.
“Vulnerabilities have allowed the whole gamut of criminality – from petty delinquency to organised crime – to penetrate the registration system in order to pursue their fraudulent ends,” said the Cour des Comptes in its findings.
Fraudulent Tactics and Financial Impact
The report highlights 30 distinct forms of exploitation linked to the scam. These range from evading environmental taxes on high-emission vehicles to falsifying roadworthiness test results. In one case, a fraudster helped a luxury car importer save tens of thousands in duties by registering vehicles as disabled-accessible, granting them tax exemptions.
From 2022 to 2024, the financial loss reached €550 million due to unpaid registration fees and fines for speeding and parking violations. Stolen cars were also re-registered through the scheme, allowing criminals to evade detection. Drug networks have reportedly used these vehicles for high-speed deliveries on highways.
Revealing the Crisis
Police noticed a sharp rise in speeding offenses, increasing by 160% between 2016 and 2022. This prompted investigations that uncovered widespread falsifications. The Cour des Comptes criticized the state for not verifying the legitimacy of 30,000 dealers granted access to the SIV. Previously, applicants had to undergo rigorous checks, but the reform simplified the process, allowing shell companies to register with minimal scrutiny.
According to Le Monde, an insider remarked, “This is what happens when you try to reduce the size of the state. Before, people had to queue for two hours for their papers. Everyone complained, but at least everything was properly checked.” The interior ministry has since acknowledged the issue, implementing measures to detect fraud and limit new SIV access approvals.
