Addressing Catalytic Converter Theft

Addressing Catalytic Converter Theft

July 6, 2021
Addressing Catalytic Converter Theft
Thefts of catalytic converters, a key part of the emission
sourced largely from mines in South Africa and Russia, but
control systems of internal combustion vehicles, are on the
also from Zimbabwe, Canada, and the United States. With
rise. The devices, which are installed not only on passenger
the COVID-19 pandemic disrupting supply chains even
vehicles but also on buses, motorcycles, and commercial
while demand has been strengthened by stricter car
trucks, use valuable metals to reduce pollutants emanating
emission rules around the world, including in China and the
from the engine. Replacing a stolen catalytic converter can
European Union, prices for these three metals doubled
cost a passenger vehicle owner up to $3,000. These thefts
between March 2020 and June 2021. Platinum now sells for
have generated interest among policymakers in what role
$1,100 per ounce; palladium more than $2,500 per ounce,
the federal government can play in addressing the issue.
and rhodium more than $23,000 per ounce. Catalytic
Some congressional offices are examining how existing
converters in a typical passenger vehicle may contain a total
federal motor vehicle theft statutes might be amended to
of about 2/10ths of an ounce of these three metals, while
address this issue.
those in larger vehicles and trucks may have up to an ounce.
Thefts Are Rising
Catalytic converters are relatively easy for criminals to steal
Press accounts abound about the increase in catalytic
because they are accessible from the underside of a vehicle
converter thefts since the beginning of the COVID-19
and can be sawed off with no specialized equipment
pandemic. National crime data collected by the Federal
(Figure 1). Converters can be removed from a vehicle in as
Bureau of Investigation do not specifically track catalytic
little as 90 seconds. Accounts indicate that thieves are
converter theft, but the National Insurance Crime Bureau
stealing catalytic converters from unattended cars rather
(NICB) reports that the number of stolen catalytic
than stealing cars and stripping them for parts in another
converters increased nearly every month in 2020. NICB
location. Thieves sell stolen catalytic converters to scrap
reports that 2,347 catalytic converters were stolen in
yards that in turn sell them to recyclers who strip them of
December 2020 alone, up from 652 such thefts in January
their precious metals.
2020. A total of 14,433 catalytic converters were stolen in
2020, according to NICB data, compared to 3,389 such
Figure 1. Catalytic Converter
thefts in 2019. NICB theft data are based on a review of
submitted insurance claims, so they likely undercount the
actual number of catalytic converter thefts.
What is a catalytic converter? A catalytic
converter is a device used to reduce emissions from a
vehicle’s exhaust system. It contains a catalyst for
chemically converting pollutants in exhaust gases (e.g.,
carbon monoxide, unburned hydrocarbons, and
oxides of nitrogen) into less harmful compounds (e.g.,
carbon dioxide, water vapor, and nitrogen gas).

Precious metals such as palladium, rhodium, and
Source: KY3 Staff, “CATALYTIC CONVERTERS: Springfield [MO]
platinum are commonly used as the catalysts. Catalytic
Police Department releases list of vehicles most targeted,” April 15,
converters were first widely introduced in U.S. cars in
2021, https://www.ky3.com/2021/04/15/catalytic-converters-
1975 to comply with Environmental Protection
springfield-police-department-releases-list-of-vehicles-most-targeted/.
Agency regulations limiting toxic emissions.

Catalytic converters, the sale of which may net thieves $25
Some vehicle owners are having vehicle identification or
to $500 depending on the type and model of vehicle they
license plate numbers etched into their catalytic converters
were attached to, have become targets for theft for several
with the idea that this could deter theft or aid investigations
reasons. During the pandemic, many cars and fleet vehicles
by making them easily identifiable or traceable. Others are
remained parked in the same spot for extended periods
installing anti-theft devices that make it harder for someone
since people were not driving as much due to pandemic
to cut off a catalytic converter.
restrictions. These vehicles might be attractive targets for
thieves because people were not paying attention to them
Federal Experience with Curbing Motor
and because the value of the precious metals they contain
Vehicle and Car Parts Theft
has risen sharply. Rhodium, platinum, and palladium are
Federal laws to deter vehicle and vehicle parts thefts were
by-products from mining nickel and copper; they are
enacted in 1984 and again in 1992 to address rising theft of
https://crsreports.congress.gov

Addressing Catalytic Converter Theft
motor vehicles that were taken to illicit body shops, often
State and Federal Efforts to Address
called “chop shops,” for disassembly. The parts—mainly
Catalytic Converter Theft
bumpers, hoods, fenders and similar large metal parts—
Existing federal statutes, like those enacted in the past to
were then sold either directly or through a salvage yard.
combat theft of major vehicle parts such as fenders and
These laws simplified the tracing and recovery of parts
hoods, would most likely not allow federal law enforcement
from stolen vehicles and established a national information
agencies to investigate offenses in which thieves steal only
system that enables states to access automobile titling
a catalytic converter and not the entire car in order to strip it
information.
for parts at another location. Catalytic converters are
removed when vehicles are parked, so immobilizer devices
In implementing these laws, the National Highway Traffic
used to deter theft of other parts are ineffective in deterring
Safety Administration (NHTSA) issued a Federal Motor
converter theft. Amending existing statutes to add catalytic
Vehicle Theft Standard, which requires manufacturers to
converters to the list of vehicle parts that must bear vehicle
apply or stamp a car’s unique Vehicle Identification
identification numbers might also be ineffective, since
Number (VIN) on the engine, transmission, and a dozen
stolen converters are rarely sold for installation on other
other major vehicle parts so law enforcement agencies can
vehicles. The value is in the metals inside the converter
better identify vehicles from which the parts were stolen.
canister, not the canister itself, so labeling would be
However, the standard does not require automakers to
ineffective once the metals were detached from the canister.
stamp identification numbers on catalytic converters.
Identifying stolen vehicle parts has been facilitated by the
NHTSA permits manufacturers to install immobilizer
National Motor Vehicle Title Information System,
technology that has prevented many vehicle thefts: when a
established by federal law in 1992 (P.L. 102-519) to keep
vehicle’s smart key or transponder is not used, the engine
stolen vehicles from being resold. Administered by the
will not run and the vehicle cannot be “hot wired.” By
American Association of Motor Vehicle Administrators, it
installing immobilizers, manufacturers can obtain an
requires regular reporting by scrap recyclers and salvage
exemption from parts labeling. A 2016 rulemaking by
yards. Harnessing the cooperation of these businesses could
NHTSA added four performance standards that automakers
lead to a decline in catalytic converter thefts if additional
must meet to establish the effectiveness of their anti-theft
documentation were to be required before converters are
devices. (Some recent cybersecurity research has
purchased.
demonstrated that it is possible to breach a vehicle’s
encryption and bypass the immobilizer.)
Scrap recyclers are a key link in the metals supply chain.
The International Association of Chiefs of Police (IACP)
Federal law enforcement agencies can investigate vehicle or
has recognized the role of the scrap recycling industry in
vehicle part theft under several federal criminal statutes:
curbing the theft of metals. The IACP has promoted the
Institute of Scrap Recycling Industries’ online portal theft
 It is illegal to transport a stolen motor vehicle in
alert system and database, which has assisted in
interstate commerce under 18 U.S.C. §2312.
identification of suspects. In addition, the IACP has
encouraged all law enforcement agencies to use the scrap
 It is illegal to receive, possess, conceal, store, barter,
recyclers’ metal theft alert system,
sell, or dispose of a stolen car that has crossed state lines
http://www.ScrapTheftAlert.com. The IACP has also
under 18 U.S.C. §2313.
recently established a working group to recommend ways to
address converter theft.
 It is illegal to buy, receive, possess, or obtain control of
a car part, with the intent to sell or otherwise dispose of
All states have laws regarding the sale of scrap metal, but
it, if the person knows that the identification number
they vary in terms of documentation that is required for
was removed, obliterated, tampered with, or altered
sales, retention of and access to transaction records, and
under 18 U.S.C. §2321.
payments by scrap yards to sellers. California has some of
the most stringent standards regarding the sale of catalytic
 It is illegal to operate, own, maintain, or control a chop
converters to scrap recyclers. In California, scrap recyclers
shop or to conduct operations in a chop shop under 18
who purchase catalytic converters are required to keep
U.S.C. §2322.
records of each seller’s name, driver’s license number, and
license plate, and a description of the catalytic converters
Investigating car and car part theft does not appear to be a
sold. Recyclers are required to retain records of sales for
priority for federal law enforcement agencies. According to
two years and to furnish them to law enforcement upon
data from Syracuse University’s TRACFed database, from
request. Sellers can be paid only by check that is either
FY2011 to FY2020 159 vehicle theft cases were referred
mailed to the address on the seller’s identification or
for federal prosecution in which Section 2312 was the lead
collected by the seller three days after the sale. Thus far,
charge (meaning it was the sole charge or the charge in a
CRS has not located evidence about the effectiveness of
multicount indictment that carried the longest sentence), 45
California’s standards in reducing converter theft.
cases in which Section 2313 was the lead charge, 21 cases
in which Section 2321 was the lead charge, and 23 cases in
Bill Canis, Specialist in Industrial Organization and
which Section 2322 was the lead charge.
Business
Nathan James, Analyst in Crime Policy
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Addressing Catalytic Converter Theft

IF11870

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https://crsreports.congress.gov | IF11870 · VERSION 1 · NEW