Retrofit bonus: what are the risks of fraud?

With the ecological transition accelerating, many motorists are looking for more environmentally friendly solutions without investing in a new vehicle. It is with this in mind that the retrofit bonus appeared. It allows drivers to convert their old combustion vehicle into an electric or hybrid car, while benefiting from financial assistance. However, this device also attracts its share of fraudsters, taking advantage of the flaws in the system to obtain undue help. How do these scams occur and what solutions exist to remedy them? We're taking stock.

Retrofit bonus: definition

Retrofitting consists in replacing a vehicle's internal combustion engine with an electric or hybrid motor. This solution is particularly interesting because it makes it possible to reduce the carbon footprint of the existing car fleet, without having to produce new vehicles.

In order to encourage this transformation, the State has introduced a retrofit bonus, which can go up to 6,000 euros for an individual and 9,000 euros for a company or a community.
This financial assistance can be combined with other schemes such as regional aid or the conversion bonus.

For more information, read the Decree No. 2024-102 of February 12, 2024 relating to subsidies for the purchase or rental of low-emission vehicles

What are the benefits of the retrofit bonus?

The retrofit grant has several advantages.

First, it extends the life of existing vehicles and reduces dependence on fossil fuels. This contributes to the reduction of CO2 emissions.
In addition, it allows drivers to benefit from the advantages of electric vehicles: the reduction of maintenance costs and easier access to Low Emission Zones (LEZs).

Who can benefit from the retrofit grant?

This assistance is intended for individuals, businesses, and communities who want to convert their thermal vehicles into electric ones.

To benefit from it, certain conditions must be met:

• The vehicle must be registered in France and have belonged to the applicant for at least one year.
• The vehicle must be a eligible model : passenger cars, vans and some motorized two-wheelers are affected.
• The conversion kit must be installed by an authorized professional in order to guarantee the conformity of the transformation.
• Resource conditions may apply to benefit from the maximum amount of aid.

Transport professionals and local authorities can also claim this assistance to electrify their fleets and reduce their carbon footprint. By adopting retrofit, businesses can not only improve their ecological image but also optimize their operating costs in the long run.

What is the retrofit premium?

The amount of the bonus varies according to the type of vehicle and the profile of the applicant:

• Up to 6,000 euros for an individual, subject to resources.
• Up to 9,000 euros for a company or a local authority wanting to convert a commercial vehicle.

Additional regional aid can be added, making retrofitting even more attractive. Thanks to these aids, the cost of a conversion is reduced, making the transition to clean mobility more accessible.

Why is the retrofit bonus attractive to fraudsters?

This is nothing new; public aid schemes have always been a target for fraudsters. In the case of the retrofit grant, several strategies are used to unduly obtain aid:

• False statements : some individuals present false documents to prove a conversion that never took place.
• Multiple attribution : fraudsters try to recover several times the premium on the same vehicle by manipulating the registrations.
• Complicity of certain garages : some unscrupulous professionals validate fictional conversions in exchange for remuneration.

What types of documents are defrauded during a retrofit fraud?

During retrofit bonus fraud, several documents may be the victims of falsification. For example:

• Conversion invoices : false invoices or modified invoices can be produced to simulate a conversion that never took place and thus obtain undue payment.
• Certificates of conformity : in order to make it look like a validated conversion, certificates can be faked to make it look like a validated conversion.
• The gray cards : the manipulation of vehicle registration information (date, engine) is frequent. The interest? Pretend to meet the eligibility criteria.
• Proof of address : in order to obtain additional regional aid, fraudsters falsify proof of address.

To continue reading on the subject: Proof of residence in France: a bulwark against documentary fraud?

With a substantial budget allocated by the State, these frauds can represent significant financial losses. Stricter regulation and strengthened controls are therefore necessary to avoid these abuses.

💡 Did you know?

Fraud in the public sector is rife. This is particularly the case in the transport sector where the shortfall amounts to around 700 million euros per year.

For more information: Public transport fraud - a 700 million euro challenge for Île-de-France

Finovox: a solution against document fraud

Faced with these abuses, Finovox has developed a solution that makes it possible to fight effectively against document fraud. The company uses artificial intelligence to analyze and verify the authenticity of documents provided by bounty applicants.

This type of technology makes it possible to:

• Quickly detect falsified documents.
• Automate controls and limit human errors.
• Prevent the award of the bonus to fraudsters.

Integrating these technologies into aid validation processes would avoid numerous frauds and ensure that only the real beneficiaries can benefit from them.

With a solution like Finovox, the authorities can secure subsidies and guarantee better monitoring of conversions.

How can we strengthen the fight against fraud?

To limit fraud and ensure the effectiveness of the retrofit bonus, several measures can be put in place:

• Reinforcing administrative controls : more stringent and systematic checks on submitted files.
• The use of technological solutions : artificial intelligence makes it possible to detect documentary fraud attempts in real time.
• Post-retrofit follow-up : check that the vehicles that have benefited from the bonus actually drive in an electric version.
• Dissuasive sanctions : more severe fines and the exclusion of fraudsters from assistance systems.

While the retrofit grant is a great initiative to accelerate the transition to cleaner mobility, it must be protected from abuse.
The adoption of technological solutions such as those developed by Finovox and the strengthening of administrative controls will ensure that this assistance only benefits those who really need it.

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