One third-party investigation has now led to at least 32 dealers getting shut down for violating temporary registration rules. The dealers have all seen their licenses either suspended or revoked altogether and some are facing criminal investigations. It appears that those who deal in fake paper tags are facing a lot more scrutiny in various states across the country.
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Temp tag fraud is a problem across the country. Dealers will fraudulently print paper tags for a fee and the possibilities for drivers are somewhat nebulous. In the most mundane cases, the tags allow the buyer to extend the time they have til they have to pay to register the car and get proper metal tags. In the most extreme cases, the tags are essentially fake but look real and people can use them to commit crimes while driving around with tags that don’t lead anywhere.
Now, the 32 dealerships across New Jersey and Georgia are facing over $150,000 in enacted or proposed fines. Three more dealerships are on probation over the situation. Of the dealers involved, seven are under criminal investigation.
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More: NYC’s Sheriff Office Seizes 76 Cars For Having Counterfeit Paper License Plates
According to StreetsBlog, a vast array of these fake “ghost tags” have ended up in New York. They’ve allowed drivers to avoid tolls, to drive without insurance, without registration, or to commit more serious crimes without exposing their identities. Its investigation found that one dealer in New Jersey, F&J Auto Mall, issued 36,000 tags in 2021 before it was shut down for fraud. F&J Auto Mall faced only a $500 fine over the situation.
In total, regulators identified over 11,600 illegally issued temp tags as part of this latest investigation. Lawmakers in both New Jersey and Georgia are working toward creating new laws and regulations that could help to stem the tide.
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This isn’t the first time Carscoops has reported on the existence of ghost tags. As early as June of 2023, Texas had set a plan in place to ban paper tags beginning in July 2025. Add that state to the list of others here who are all putting the crunch on this shady situation. Fraudulent dealers and businesses that supply black market ghost tags must be feeling the heat at this point.