VIN Fraud in Canada: What It Is and How to Avoid It

Buying a used car may be a more cost-effective approach than buying new, but it’s important to be aware of potential risks. One of the biggest issues to watch out for is VIN fraud. VIN fraud is when someone illegally changes the Vehicle Identification Number (VIN) of a vehicle to hide a vehicle’s true history, often to sell stolen vehicles without detection.

Unfortunately, VIN fraud is a persistent problem in Canada. CARFAX Canada estimates that there are over 372,000 potentially cloned VINs in Canada.  Many Canadians are concerned about vehicle fraud and theft, with 1 in 5 reporting that they or someone they know has been directly affected.

VIN cloning happens when someone steals the VIN - think of this as your car’s fingerprint - from a legitimate vehicle and puts it onto another vehicle, which is typically stolen. This hides the real VIN of the stolen vehicle, essentially giving it a fake ID. The result is two cars on the road with the same VIN, making it difficult to trace the falsified vehicle as it appears to have a “clean” VIN that is not flagged as stolen.

Changing the VIN on a vehicle conceals its true history, making it hard to detect if it was stolen. However, because CARFAX Canada has the largest VIN-based vehicle history database in North America, our Vehicle History Reports can show tell-tale signs that a VIN might be fraudulent.

When shopping for a used car, checking its history with a CARFAX Canada Vehicle History Report is an essential step to help detect potential VIN fraud. Our reports also provide critical information to help ensure an informed purchase such as revealing if the vehicle has been in an accident, has any open recalls, or has money owing.

If you already own a vehicle, you can subscribe to CARFAX Canada Vehicle Monitoring. This monthly subscription helps Canadians detect potential VIN fraud and tracks open recalls, service records, and other important events in your car’s history.

Although VIN fraud can be difficult to detect, a Vehicle History Report can be particularly helpful in revealing history that might be indicative of potential fraud.

These are some clues to look out for when reviewing your Vehicle History Report:
 

• Large gaps or missing vehicle registration information: Be cautious if there are extended periods with no reported registration information.
  
  
• Missing import/export records: When crossing the border, a vehicle should have records from the Registrar of Imported Vehicles (RIV) stating it had left or been brought into Canada.
  
  
• Vehicle has been registered in multiple regions: Notice if the vehicle has been registered back and forth in numerous different provinces or countries.
  
  
• Timing of events not plausible: If a vehicle’s maintenance or accident records appear to be jumping between provinces—or even countries—faster than physically possible, it could be a red flag. For instance, if an event is recorded in Ontario, then shortly after another one is recorded in Alberta, and then back to Ontario in a timeframe that wouldn’t allow for actual travel, something may not add up.
  
  
• Conflicting information: If a vehicle's colour changes within a report or there are unusual odometer patterns, this would be cause for concern. 

Discovering signs of potential VIN fraud when purchasing a used car can be alarming. Here are some steps you can take before you buy to help navigate this situation:

• Review the Vehicle History Report: Carefully review the Vehicle History Report to look for any inconsistencies in the vehicle information mentioned above.
  
  
• Compare the VIN: Check the VIN against official records and with the car’s original manufacturer (OEM).
  
  
• Verify vehicle history: Contact the owner of the vehicle to verify that the vehicle’s history matches their expectations. 

If things aren’t adding up, you might want to think twice about committing to a purchase.
 

If you are the owner of the vehicle and suspect potential fraud, in addition to the steps above, you may want to consider the following steps:

• Report fraud to authorities: If you suspect a fraudulent VIN, consider reporting the suspected fraud to your local law enforcement through the non-emergency line and obtain an incident report.
  
  
• Contact CARFAX Canada: Submit a ticket to CARFAX Canada to have your report investigated. Our dedicated team will conduct an investigation based on your report and help guide you through the required steps.
  
  
• Contact the provincial ministry or the US state department: If potentially fraudulent history is revealed, the first thing you will likely need to do is contact the provincial ministry or US state department where the suspicious history stems from. CARFAX Canada can help provide contact details.
  
  
• Notify your insurance company: Inform your insurance company about the fraudulent record(s). They need to be made aware of this fraudulent record.
   

Your best defense against VIN fraud is knowing it’s a growing issue and having the right information before making a purchase. Obtaining a CARFAX Canada Vehicle History Report to get the full history of any used vehicle is a crucial step in avoiding potential VIN fraud.

If you see any inconsistencies in the report, take extra time to investigate further. Trust your instincts during the buying process. If a deal seems too good to be true, it probably is, and it’s best to walk away.