Europe12 March, 20261 min read
French State's Mass Outsourcing Enables €1.5 Billion Vehicle-Registration Fraud, Court of Auditors Finds
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
Nearly one million illegally-registered vehicles are circulating in France Massive outsourcing of the SIV enabled fake dealerships to manipulate registration records
Court’s headline finding
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.
“'Massive fraud' in vehicle registrations: nearly one million 'invisible' vehicles are illegally on the road in France, the financial damage is colossal!”
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.
Outsourcing & SIV access
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.
Financial scale
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.
“From these abuses, the report quantifies the shortfall at more than €550 million, only between 2022 and 2024.”
The auditors also warn that the cumulative damage could amount to at least €1.5 billion when wider abuses are included.
Fraud methods
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.
Calls for reform
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.
“The Court calls for an urgent takeover of a system that has been allowed to run on autopilot for too long.”
The report’s authors call for stronger oversight after what they describe as years of the system running “on autopilot.”