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Letter to the Editor

Ford Launches Airbag Anti-Fraud Effort

Airbags have surpassed stereo equipment as the most frequent target of thieves, which has created a black market being tapped by unscrupulous repairers, according to law enforcement authorities.

Compounding the problem is a growing number of inappropriate repairs in which legitimate airbag modules are not used. At least two people have died in auto accidents as a result of this practice, according to the Automotive Occupant Restraint Council (AORC). Carfax.com, the internet vehicle inspection firm, estimates that one in every 25 repairs requiring airbag module replacement ends up with installation of a bogus airbag, or no airbag at all.

To address these troubling trends, Ford has created an internet website that includes a database of serial numbers for all replacement airbag modules purchased by Ford and sold to its authorized dealers in the U.S. and Canada since Feb. 1, 2002. Authorized Ford, Lincoln and Mercury parts wholesaling dealers subsequently sell the replacement modules to collision shops.

Participants in the pilot program obtain from the collision repairer the serial number of the module specified for the repair, access the website to verify the legitimacy of the module, and check off the serial number so that its disposition is noted the database. Serial numbers for modules installed in new production vehicles will not be in the database, thereby alerting investigators to the potential of stolen modules. Repairers unable to provide module serial numbers also will come under scrutiny.

“Insurers pay the bill for about 85 percent of collision repairs and damages resulting from theft,” said Steve Nantau, Collision Repairs Supervisor for Ford Customer Service Division’s Aftermarket Engineering and Remanufacturing Operations. “They have a vested interest in reducing these problems but, up until now, have had very few tools to help them. We believe the website will be a valuable resource insurers can access at will to strengthen existing post-repair auditing processes.”

Nantau points to a study conducted in 1996 by State Farm, the nation’s largest auto insurer, after which it concluded airbag theft alone cost the auto insurance industry $253 million annually. The problem has grown since then, as the carfax.com data suggests, and is one factor that drives up the cost of auto insurance, according to Nantau.

Robert M. Bryant, President and CEO for the NICB, believes information contained in the database will be extremely useful to NICB Special Agents and insurance investigators. The NICB represents the interests of more than 1,000 U.S. auto insurers – who write more than 90 percent of all auto insurance policies in the U.S. – and serves as the intermediary between the insurers and law enforcement agencies.

“The information in the database will provide those involved in insurance investigations with another resource to validate the adequacy of completed repairs and to better determine the need for potential investigations,” Bryant said. “We applaud Ford for addressing this growing problem and see this initiative helping to improve the overall quality of collision repair and policyholder satisfaction.”

The program will ultimately serve to protect vehicle owners, who are unlikely to be able to detect problems with airbag systems. Nantau suggested the following tips for vehicle owners who may have concerns following a collision repair or after purchasing a used vehicle:

• When in Doubt, Go to Your Dealer – If you have any doubts, have your vehicle checked by a Ford, Lincoln or Mercury dealer. Undeployed airbags are extremely dangerous – do not attempt to troubleshoot if you suspect problems.
• Dashboard Light – Most newer vehicles have a dashboard light that illuminates for a few seconds when the vehicle is first started to signal the airbag system is working properly. If the light stays on, starts flashing or doesn't flash on at all, have the vehicle checked immediately by a Ford, Lincoln or Mercury dealer.
• Collision Repair Invoice – After a collision repair, check the repair invoice to make sure the replacement airbag module(s) was purchased from a Ford, Lincoln or Mercury dealer. Dealers are the exclusive distributors of genuine Ford replacement airbag modules, and Ford recommends that repairs be made only with these modules.
• Airbag Cover – Fake airbag covers have been used to hide the fact that a new module has not been installed. Telltale signs to look for: Bogus covers rarely have the vehicle's logo imprinted on them. The color of fake covers may vary, even if they fit well. The color of a genuine cover will match exactly.

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