Auto Theft and VIN Cloning: What You Need to Know

In recent years, the auto industry has faced a significant rise in vehicle theft and fraud, causing increasing anxiety among Canadians. Auto fraud is big business in Canada, and it often starts as auto theft. During 2024, approximately 69,000 vehicles were reported as stolen in Canada.¹
 

Vehicle theft in Canada is mainly carried out by organized crime groups. While the methods used to steal vehicles are constantly evolving, here are some common ones:

• Relay attacks: Thieves intercept key fob signals to unlock, start, and steal vehicles.
  
  
• CAN bus hacks: Using specialized hardware, thieves access a vehicle's Controller Area Network (CAN) bus system to unlock doors, start the engine, and steal the car without intercepting key fob signals.
  
  
• Violent crimes: Some criminals resort to carjacking and breaking into vehicles due to the high demand for stolen cars.
  
  
• Test drive thefts: Individuals use fake identification during a test drive at a dealership and then drive away with the car.

Once a vehicle is stolen, the criminals typically want to try and resell it. However, the rightful owner of the vehicle will likely report this crime to the police, and the police will put a flag on that vehicle’s identification number (VIN) that it’s been reported as stolen. This flag helps ensure the vehicle is not resold and helps law enforcement track and recover the vehicle.

A VIN, or Vehicle Identification Number, is the unique I.D. assigned to every car when it’s manufactured. It serves as the car’s distinct identifier containing all the essential information about its make, model, year of production, manufacturing location, and more. Think of it as your car’s fingerprint; no two vehicles have the same VIN.

VIN cloning happens when someone takes the VIN from a legitimate car and places it onto another similar vehicle, usually a stolen one. This fraudulent practice hides the identity of the stolen vehicle by essentially giving it a fake ID. This results in two cars on the road with the same VIN. 

If you buy a vehicle with a cloned VIN, that vehicle is unfortunately never really yours, though you could be held responsible for any outstanding loans or liens on the vehicle itself. That’s why it’s important to check for potential VIN fraud before purchasing a used vehicle.

If you were to become a victim of VIN fraud, here are some potential consequences you could face:

• Vehicle seizure by authorities: Authorities may confiscate the vehicle once its true identity is discovered, causing you to lose your investment.
  
  
• Legal issues: Owning a cloned car can lead to legal troubles such as ownership disputes and potential fraud allegations.
  
  
• Insurance problems: You may face difficulties obtaining or keeping insurance coverage, and insurers might refuse to cover repairs or theft.
  
  
• Resale challenges: The vehicle's resale value may decrease and selling it could be complicated, or you may be unable to sell it at all.
  
  
• Safety concerns: There may be hidden damage or safety issues, putting the new owner at risk.

VIN cloning is mainly used to hide the identity of a stolen car by using the VIN from a different car, typically from another region. This makes it challenging for law enforcement to trace the vehicle back to its rightful owner. Tracking becomes even more difficult when the cloning occurs across countries. For example, this happens when the original vehicle stays in Canada, while its cloned counterpart is sold in the US, making it challenging to track. 

Protecting yourself from VIN fraud requires some due diligence before you close the deal. Here are a few things you need to do:

Always verify the VIN before purchasing a car. You can typically find the VIN on the car’s dashboard, on the driver’s side door frame, and on the engine block. You’ll also want to make sure the VIN matches the one found on the vehicle’s documents, including the title and registration. You can use a VIN Decoder Tool to gain more insight into the vehicle’s details in order to verify that everything matches.

One of the best ways to help ensure the car you’re buying is the car you think it is, is to get a CARFAX Canada Vehicle History Report + Lien Check. This can give you available information on the car’s past, including accident history, service records, and any outstanding loans that might be on the vehicle.

Make sure the seller of the vehicle is the rightful owner. Don’t be afraid to ask for all the proper documentation to validate it, including proof of ownership along with a proper government-issued photo ID.

If a deal seems too good to be true, it usually is. VIN cloned vehicles are often listed at low prices to quickly attract unsuspecting buyers. Use our Value Range tool to check if the vehicle is reasonably priced.

If something seems suspicious, like you find spelling or grammatical errors on the documents, or the seller is evasive when you ask questions, consider walking away from the deal altogether.

While VIN fraud is most common during the transactional stage of vehicles, it can also affect you as a vehicle owner. Here are some things you can do to help protect yourself as a vehicle owner:

• Stay on top of your vehicle’s history: Regularly check a CARFAX Canada Vehicle History Report to ensure any new activity added to the vehicle’s history matches your expectations.
  
  
• Secure documents: Keep your vehicle’s registration, insurance papers, and other related documents in a safe place. 
  
  
• Stay informed about scams: Criminal techniques evolve, so it's important to stay updated on the latest trends.
   

Navigating the world of used car buying can be challenging, especially with the increasing risk of vehicle theft and VIN fraud. Understanding how these scams work and taking the necessary precautions is crucial to helping to protect yourself.

By verifying the VIN, obtaining a comprehensive Vehicle History Report, and trusting your instincts, you can help reduce the risk of becoming a victim.