Ford Wants To Give Cars Birth Certificates To Combat Fraud
This new technology could make used car fraud a thing of the past.
Despite advances in security technology, scandals still happen in the used car market. Buying a used car can save you money, but it's also very risky if a car's history isn't properly documented. Advertised cars that appear to be in pristine condition could have suffered damage from a prior accident and have underlying problems, as one buyer discovered last month when they bought a used Tesla Model 3. Then there's the age-old trick of rolling back the odometer to fraudulently increase a car's market value.
To tackle this problem, Ford, BMW, and other transportation companies are teaming up with startup company Mobility Open Blockchain Initiative (MOBI) to develop technology that tracks and protects a vehicle's true identity more accurately from the time it rolls off the production line.
Effectively, this will give the car a birth certificate. Based on the Vehicle Identity (VID) II Standard, the blockchain technology will work as a secure digital ledger containing a car's record such as a vehicle's registration and maintenance history, which can be accessed by buyers, regulators, and insurers. MOBI claims this technology is "tamper-proof," enabling buyers to avoid buying used cars with incorrect mileage, maintenance or damage histories.
