There were over 120,000 reported auto fraud and scam cases in the U.S. in 2020. Drivers who are unfortunate to do business with a dishonest mechanic or dealership can be tricked out of hundreds if not thousands of dollars.

Auto fraud comes in many different forms. Mechanics may overcharge or double charge for services, make unnecessary repairs, fake malfunctions, price gouge, or charge for unused parts. Car dealerships may lie about a buyer’s credit score, sell useless warranties or unnecessary products, and charge high interest rates. These practices are much more common in some states than others.

To determine the worst states for auto fraud, 24/7 Wall St. reviewed a list compiled by insurance marketplace Clearsurance, which based its list on data from the Federal Trade Commission. States were ranked based on the per capita number of auto-related fraud cases.

The rate of auto fraud varies widely from state to state. Most states reported between 140 and 250 cases per million residents in 2020. In three states, there were fewer than 100 cases per million, but in eight states, there were more than 300 cases of auto fraud per million residents.

In Mississippi, auto fraud complaints are slightly more likely than in the typical state. Drivers in the state reported 198.6 incidents of auto fraud per million residents in 2020 — the 22nd highest rate among all states. The median among all states is 187.9 cases per million residents. In total, Mississippi residents reported 591 cases of auto fraud in 2020, the 21st lowest figure among states.

To determine the worst states for auto fraud, 24/7 Wall St. reviewed a list compiled by insurance marketplace Clearsurance, which based its list on data from the Federal Trade Commission. States were ranked based on the per capita number of auto-related fraud cases.

 

State	Total 2020 auto fraud cases	2020 auto fraud cases per 1 million	Rank
Alabama	820	167.2	31
Alaska	107	146.3	39
Arizona	1,897	260.6	14
Arkansas	491	162.7	34
California	6,374	161.3	35
Colorado	1,510	262.2	12
Connecticut	1,137	318.9	4
Delaware	329	337.9	2
Florida	7,238	337	3
Georgia	3,221	303.4	8
Hawaii	200	141.3	42
Idaho	341	190.8	25
Illinois	2,042	161.1	36
Indiana	1,332	197.9	23
Iowa	496	157.2	37
Kansas	213	73.1	49
Kentucky	882	197.4	24
Louisiana	680	146.3	38
Maine	172	128	47
Maryland	1,893	313.1	6
Massachusetts	106	15.4	50
Michigan	1,427	142.9	40
Minnesota	779	138.1	43
Mississippi	591	198.6	22
Missouri	1,940	316.1	5
Montana	143	133.8	46
Nebraska	350	180.9	27
Nevada	1,066	346.1	1
New Hampshire	404	297.1	9
New Jersey	2,352	264.8	11
New Mexico	477	227.5	18
New York	3,392	174.4	29
North Carolina	2,569	244.9	17
North Dakota	105	137.8	45
Ohio	3,554	304	7
Oklahoma	712	179.9	28
Oregon	688	163.1	33
Pennsylvania	3,338	260.7	13
Rhode Island	80	75.5	48
South Carolina	1,314	255.2	16
South Dakota	122	137.9	44
Tennessee	1,773	259.6	15
Texas	4,765	164.3	32
Utah	454	141.6	41
Vermont	130	208.3	19
Virginia	2,376	278.4	10
Washington	1,305	171.4	30
West Virginia	358	199.8	21
Wisconsin	1,177	202.1	20
Wyoming	107	184.9	26

 

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.