As dealers cope with managing auto theft, or the potential impact of it on their business, action is being taken to curb the issue across Canada — though it is clear more needs to be done.
In an interview with Canadian auto dealer, Huw Williams, Director of Public Affairs for the Canadian Automobile Dealers Association, said CADA took part in the National Summit on Combating Auto Theft in Ottawa on Feb. 8, 2024.
However, despite efforts from various parties aimed at producing measures that will reduce the number of stolen vehicles — including announcements of over a hundred million dollars in funding to stop organized crime in the area — Williams said some challenges remain.
“Lalonde said there are various ways a dealer can fall victim to auto fraud: stolen vehicles, VIN cloning, VIN tampering — or a fake VIN, and getting inaccuracies in vehicle data. VIN cloning and fake VINs are particularly deceptive to dealers.”
“As the push for government action takes place, we’re cognizant that dealers are still vulnerable on a day-to-day basis,” he said, later adding that “our campaign has shifted from awareness to accountability.”
As CADA leans in another direction, Stephan Lalonde, Director of Dealer Sales for CARFAX Canada, is seeking to increase awareness of a growing problem around VINs that is related to the larger auto theft situation.
“Dealers are unsure of the steps to take once they are faced with a situation where they suspect a VIN clone and how to rectify it,” he said. “They don’t want to be stuck with an expensive, illegal vehicle they can’t sell.”
Lalonde said there are various ways a dealer can fall victim to auto fraud: stolen vehicles, VIN cloning, VIN tampering — or a fake VIN, and getting inaccuracies in vehicle data. VIN cloning and fake VINs are particularly deceptive to dealers.
VIN cloning, he explained, is when someone steals a VIN from a legitimate vehicle and puts it onto another vehicle, which is typically stolen. The VIN of the stolen vehicle is masked thanks to a fake ID, meaning there are two vehicles on the road with the same VIN.
“A fake VIN is when bad actors create a VIN that decodes properly, but there is no real vehicle,” said Lalonde. “(This) can be used to commit fraud by reporting the vehicle as stolen.”
So what can dealers do to protect themselves against auto fraud and acquiring a potentially stolen vehicle? Lalonde advises reading the full Vehicle History Report (VHR) and looking for clues within it, such as:
- gaps or missing vehicle registration information;
- the vehicle has been registered in multiple regions;
- additional history in other cities (damage or history in locations that do not line up, or the timing between historical events does not seem plausible);
- missing history or gaps in information that seem suspicious; and
- check the Stolen Vehicle Status on the VHR.
The auto theft issue has increased to the point that, based on Canadian consumer data from a research report conducted by CARFAX Canada, 70 per cent of consumers say a stolen status is very important to know prior to buying a vehicle — more important than the condition, mileage or service history.
The report considered recent buyers of new or used vehicles in the past 12 months (n=1012, May 2024).
