French State's Mass Outsourcing Enables €1.5 Billion Vehicle-Registration Fraud, Court of Auditors Finds

France’s Court of Auditors has identified a massive, systemic fraud in vehicle registrations tied to the outsourcing of administrative procedures, finding nearly one million vehicles circulating illegally and estimating a total shortfall at least €1.5 billion.

“- Published A million illegally-registered cars are being driven in France in a fraud scandal that has cost hundreds of millions of euros in lost taxes and fines, according to the state auditor”

BBC

The auditors framed the situation as the product of “the excesses of uncontrolled outsourcing” and described the assessment as severe, while the state has said it will tighten controls.

BBC

The auditors trace the vulnerability to the 2017 reform under the Préfecture Nouvelle Génération plan that transferred issuance of registration certificates from prefectures to private operators.

That reform gave roughly 30,000 authorized professionals direct access to the national Vehicle Registration System (SIV) and, the Court says, opening access without sufficient controls created fertile ground for abuse.

L'Indépendant

The report quantifies the immediate fiscal impact: auditors calculate more than €550 million in lost revenue between 2022 and 2024 from unpaid registration taxes and fines.

“One million cars registered illegally: how vehicle registration fraud cost the state more than half a billion euros Outsourcing the vehicle registration system (SIV) cost the state more than €550 million”

La Dépêche

The auditors also warn that the cumulative damage could amount to at least €1.5 billion when wider abuses are included.

Auditors detail specific scam patterns: so-called “ghost garages” and fictitious companies—sometimes no more than a PO box—obtained online authorization to access the SIV and then registered vehicles en masse.

These schemes enabled VAT and regional tax fraud, the circulation of stolen vehicles via fake inspections, unpaid fines, and improper claims on public aid.

Le Figaro

The Court of Auditors urges rapid corrective action and an urgent takeover of the system, while the auditors and media highlight late ministerial awareness and promise tighter controls.

“France's Court of Auditors is sounding the alarm about a widespread system of fraud linked to vehicle registrations in France”

Mac4Ever

The report’s authors call for stronger oversight after what they describe as years of the system running “on autopilot.”

Mac4Ever