‘Ghost garages’ in France: more than 1 million vehicles fraudulently registered
State and local authorities defrauded of over €550 million between 2022 and 2024, says state auditor
These “ghost garages” issued documentation that appeared normal to police officers
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More than one million vehicles on French roads have been fraudulently registered through ‘ghost garages’, costing the state and local authorities over €550 million in lost revenue between 2022 and 2024, according to a new report from France’s state auditor.
The abuse stems from the 2017 Préfecture nouvelle génération plan, which part-privatised vehicle registration.
Previously handled entirely by civil servants at prefectures, the registration process was transferred to around 30,000 private operators - mainly car dealerships - who were granted direct access to the state vehicle register (SIV).
The move was intended to speed up processing but, according to the auditor, relied too heavily on the operators’ good faith.
Systemic vulnerability
“This large-scale privatisation opened breaches that allowed the whole spectrum of criminality - from petty delinquency to organised crime - to penetrate the registration system,” states the Cour des Comptes report published on March 12.
Fraudulent dealers, often operating entirely fictitious garages, exploited the system to register vehicles that would be effectively untraceable to authorities.
These “ghost garages” issued documentation that appeared normal to police officers. Drivers presenting such papers could pass roadside checks, while the vehicles themselves, often stolen or unsafe, could circulate freely.
Some fraudsters also used the system to avoid environmental taxes, falsify road-worthiness certificates, or erase previous ownership records.
The scale is unprecedented, with the Cour des Comptes estimating that nearly one million cars were registered via approximately 300 fictitious operators.
The direct financial impact includes unpaid registration fees, parking fines, and speeding tickets, but of more concern, the scheme has been supportive to various facets of organised crime.
Stolen vehicles have been re-registered to conceal their origins, with some having been used by drug gangs for high-speed transport, including motorway “go-fast” operations.
The Cour des Comptes cites the absence of systematic checks at the SIV registration stage as a key weakness.
The report notes that priority was given to rapid processing, which allowed fraudulent operations to continue over several years. Measures introduced from spring 2025, including tighter scrutiny of authorised operators, have so far not fully addressed the problem.
The auditor calls for an urgent “reprise en main” by the state. Recommended steps include limiting the number of private operators with direct SIV access to a small group of trusted intermediaries and reinstating mandatory pre-registration checks to prevent fraud.
The interior ministry has acknowledged the issue, stating that last year’s action plan increased fraud detection and reduced the number of authorised SIV users. The Cour des Comptes emphasises that further intervention will be required to close loopholes and secure vehicle registration.
Click here to consult the full report by the Cour des comptes
