Prevalence: According to the National Highway Traffic Safety Administration (NHTSA), it is estimated that up to 450,000 vehicles with rolled-back odometers are sold each year in the United States.

Financial Impact: The Federal Trade Commission (FTC) estimates that odometer fraud costs consumers in the U.S. over $1 billion annually. This is a prevalent problem effecting all aspects of the automotive retail as well as the wholesale market. On average, a vehicle with a rolled-back odometer can be sold for as much as 40% higher than its true value.

Legal Consequences: Odometer fraud is illegal and can result in severe penalties. In the U.S., the Motor Vehicle Information and Cost Savings Act imposes fines of up to $15,000 per violation. In many states, individuals found guilty of odometer fraud can face criminal charges, including fines and imprisonment.

Safety Risks: Customers may be deceived in purchasing vehicles with higher mileage then displayed on the odometer due to odometer rollback. Vehicles with higher mileage may have worn-out parts and systems that may require replacement or repair. Buyers of such vehicles are at a higher risk of experiencing mechanical failures, which can lead to accidents. A study by the Insurance Institute for Highway Safety (IIHS) found that vehicles with higher mileage are more likely to be involved in crashes due to increased wear and tear on critical components.

Detection Challenges: Odometer tampering can be difficult to detect, especially if the fraud is performed by professionals. Techniques such as digital manipulation and physical alteration can make it hard for even experienced mechanics to spot the fraud.According to the NHTSA, only about 10% of odometer fraud cases are detected and reported. One of the most useful tools for consumer remains a vehicle history report as it itemizes the vehicles reported mileage at each stage of its life.