One third-party investigation has resulted in the closure of at least 32 merchants for breaking temporary registration restrictions. All of the dealers’ licenses have been suspended or canceled, and several are being investigated criminally. Those who deal in bogus paper tags appear to be facing increased scrutiny in various locations around the country.
Across the country, there is a problem with temp tag fraud. For a fee, dealers will fraudulently produce paper tags, and the options for drivers are somewhat hazy. In the most ordinary circumstances, the tags allow the buyer to extend the period before having to pay to register the car and obtain genuine metal tags. In the most extreme circumstances, the tags are virtually fraudulent yet appear legitimate, allowing people to commit crimes while driving around with tags that lead nowhere.
The 32 dealerships in New Jersey and Georgia are now facing fines of more than $150,000, either enacted or planned. Three more dealerships have been placed on probation as a result of the matter. Seven of the dealers are being investigated criminally.
According to StreetsBlog, a large number of these forged “ghost tags” have been discovered in New York. They’ve made it possible for drivers to skip tolls, drive without insurance or registration, or commit more serious crimes without revealing their names.
Its research discovered that one New Jersey dealer, F&J Auto Mall, issued 36,000 tags in 2021 before being shut down for fraud. F&J Auto Mall was only fined $500 for the incident.
As part of this current probe, officials discovered over 11,600 unlawfully issued temporary tags. Both New Jersey and Georgia lawmakers are seeking to enact new rules and regulations that will assist in stemming the flow.
Carscoops has previously reported on the existence of ghost tags. Texas had planned to abolish paper tags beginning in July 2025 as early as June 2023. Add that state to the list of others who are putting a stop to this dubious situation. At this point, fraudulent dealers and firms who offer black market ghost tags must be feeling the heat.