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By Max Dorfman, Research Author, Triple-I
Rising catalytic converter thefts – driven at least in part by increased black market prices for automotive pollution control components – have led countries and states to refocus on stopping these crimes.
Converter thefts increased in 2021, with 52,206 reported, up from 1,298 in 2018, according to claims data from the National Insurance Crime Bureau (NICB). Catalytic converters are part of a vehicle’s exhaust system, reducing toxic gases and pollutants and converting them into safe emissions. Although the part itself is valuable — sometimes exceeding $1,000 on the black market — the precious metals it contains can be more valuable than gold. These include palladium, platinum and rhodium, with the latter being valued at $20,000 an ounce.
The NICB has found a strong connection between “times of crisis, limited resources and supply chain disruptions that drive these thefts”.
In late 2022, the US Department of Justice, along with federal, state and local law enforcement agencies, dismantled a network of thieves, dealers and fabricators involved in selling tens of millions of dollars of stolen catalysts to a metals refinery. The ring included nine states from California to Virginia. The United States is now seeking forfeiture of $545 million related to the case.
“This national network of criminals is hurting victims across the country,” said FBI Director Christopher Wray. “They made hundreds of millions of dollars doing it – on the backs of thousands of innocent car owners.”
The legislature takes note of it
In 2021, 26 states in the US proposed legislation to limit catalytic converter theft. Strict laws in Arkansas, South Carolina and Texas require scrap buyers to keep records of catalytic converter purchases. A Catalyst Theft Prevention Program has been created in Minnesota to investigate and prosecute this crime.
Recently, US Rep. Jim Baird of Indiana introduced a federal law to prevent auto recycling theft that would help law enforcement crack down on these thefts by tagging each converter with a traceable identification number and setting federal penalties.
“Anyone who steals or knowingly and unlawfully takes, carries away or conceals a catalytic converter from another person’s motor vehicle, or knowingly purchases such a catalytic converter with the intention of distributing, selling or disposing of that catalytic converter or precious metals removed therefrom in interstate or foreign commerce shall be punishable under that title by a fine or imprisonment for a term of not more than 5 years, or both,” the legislation reads.
The accompanying legislation was introduced in the Senate by Sen. Amy Klobuchar of Minnesota and Ron Wyden of Oregon.
Preventive measures can be taken
The NICB recommends several steps to protect against catalytic converter theft:
- Install a catalytic converter anti-theft device.
- Park fleet vehicles in an enclosed area that is secured, well-lit, locked and alarmed.
- If possible, park your car in a garage. If this is not possible and the vehicle must be parked in a driveway, consider installing motion sensor security lights. Whether it’s in the garage or out in the driveway, set the alarm on your vehicle if you have one.
- Attend a local NICB catalyst etching event. If none are currently planned in your area, contact a muffler shop who can etch your vehicle’s VIN onto the converter and spray paint it with a high-visibility high-temp paint.
The NICB advises that these thefts may be covered by insurance under the optional Collision Damage Waiver portion of your insurance policy, covering non-collision damage to your vehicle.