FBI: ‘More could be done’ to fix Texas’ paper license plate problem

The man with hundreds of real but fraudulently created temporary Texas tags thinks he is about to sell one more. The buyer, however, is an undercover cop. “$100,” the seller said, sitting behind the wheel of his truck, in an Austin Walmart parking lot. “$100?” the undercover officer asked. “Yes,” the seller said, according to hidden cameras obtained exclusively by KXAN, before agreeing to part with the paper license plate for $95. “OK, done deal,” a voice is heard over the radio when the money changes hands. “Done deal.”

A recent KXAN investigation found criminal suspects are infiltrating the Texas Department of Motor Vehicles database. Posing as car dealers, they’re printing real paper license plates — using fake names and Vehicle Identification Numbers — making it difficult for law enforcement to know if a car is stolen or salvaged while allowing fugitives to hide in plain sight. “Texas is leading the way,” said Federal Bureau of Investigation Special Agent Brannon Coker with the Houston Division, “in the volume of paper tags that are being fraudulently issued across the country.” “Just the ease of which criminal organizations are able to obtain these tags,” he said, “I think, has led to a proliferation.” A new state law, which gives the TxDMV authority to quickly shut down suspected fraudsters, doesn’t go far enough, Coker said. Investigators worry criminals will keep applying for new dealer licenses. “I just think there’s more that could be done,” said Coker. “Hopefully the state can put some fixes in place to hopefully mitigate this problem.” After KXAN stated asking questions, a TxDMV advisory committee recommended newer, non-franchised car dealers be fingerprinted, their lots verified in person and paper tags capped at 900 a year.