Drivers have been warned of vehicle seizures and hefty fines for breaking the new number plate rules currently under review.
The Government has launched a public consultation on tougher penalties for drivers who use illegal number plates designed to avoid detection by police cameras.
The so-called "ghost plates" can make it very difficult for authorities to track vehicles on UK roads due to the plates being harder to detect.
The Department for Transport has now started consulting on whether motorists caught using fake registration plates should receive penalty points on their driving licence.
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Officials are also considering whether vehicles could be seized in some cases. The consultation is open until March 31 and forms part of a wider review of motoring offences.
The need for change follows outcry by drivers and MPs alike, which has now prompted the Government to include the crackdown in its new Road Safety Strategy.
Ghost plates usually feature raised 3D or 4D lettering made from gels or plastics, which creates shadows and distortions that confuse Automatic Number Plate Recognition cameras.
More advanced plates use materials that become transparent under infrared light. This makes them nearly invisible to cameras at night or in bad weather.
The DVLA will be given new powers to help remove 'ghost' number plates
| DVLA/PAResearch suggested that about one in 15 vehicles on UK roads may now have these fraudulent plates.
Police warned that vehicles fitted with ghost plates can effectively disappear from camera networks. This makes it much harder to track offenders and enforce the law.
The crackdown has been welcomed by law enforcement officials and MPs who have campaigned on the issue.
West Midlands Police and Crime Commissioner Simon Foster said: "This is a significant win for law and order and a huge step forward for road safety. For too long, criminals have used ghost plates to operate under the radar, evading the technology available to keep our streets safe."
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What a 'ghost' number plate looks like to an ANPR camera | WOLVERHAMPTON COUNCILSarah Coombes, MP for West Bromwich, who has been advocating for legislative changes, added: "There is no good reason to use a ghost plate.
"It threatens safety on our roads and allows criminals to go under the radar. But they've now been rumbled."
The Government has outlined a multi-part plan to tackle ghost plates. Ministers will work with the DVLA, the DVSA, police forces, and industry representatives to review current number plate standards.
The DVLA will receive stronger powers to inspect suppliers more thoroughly. This is aimed at stopping people with criminal records from operating as authorised plate dealers.
Sarah Coombes MP has called for the Government to crack down on ghost number plates | PALabour will also fund research to understand the widespread problem of ghost number plates and explore whether artificial intelligence could help identify illegal plates that cannot be detected by normal cameras.
Ministers stressed that any new penalties must balance punishment, deterrence, and rehabilitation. They also want to make sure the measures do not put too much strain on the justice system.
The ghost plate crackdown is part of a wider consultation on motoring offences.