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Hi, I am Leon, a NSW Solicitor. I am reviewing your question and will reply again in a moment.
If your son has not transferred the registration into the friends name it was done fraudulently
Did your sone transfer it to his friends name?
No you do not have to be the one that owns it to have it registered in your name.
Your son is going to have to report this to the police.
Also he will have to contact the Transport department and make and application to get copies of the documents to see how the car was transferred to his friends name
Hopefully the police will get involved.
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Your son has to get evidence of what he has done from the transport department and report this to the police.
If he was here it would be quicker he could do it in person but he needs to do it form the UK
It is not going to be easy
But call the police and report it and also get as much as he can from the department of transport,
You are very welcome and all the best
Thank you for the rating it is much appreciated