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, or “re-vinning,” is when someone illegally changes the Vehicle Identification Number (VIN) to hide a car'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.¹ Many Canadians are concerned about vehicle fraud and theft, with 1 in 5 reporting that they or someone they know has been directly affected.²

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 fraudulent practice 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.     

This practice creates risk for both used car buyers and vehicle owners. If you are looking to buy a used car, you could end up purchasing a stolen vehicle disguised as a legitimate one. If you own a vehicle, your VIN could be used to disguise a stolen vehicle. Either scenario has negative consequences which could include law enforcement seizing your vehicle, insurance denying claims, a significant drop in resale value, and an inability to sell or trade the vehicle.

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, we’re able to detect signs that a VIN might be fraudulent. Some key indicators of potential fraud within a vehicle’s history include: 

• Large gaps or missing registration information
• Missing import/export records
• If the vehicle has been registered in multiple regions 
• Other conflicting information 

We’ve created tools powered by our robust vehicle history database to help protect used car buyers and vehicle owners from VIN fraud.

When shopping for a used car, CARFAX Canada VIN Fraud Check can help detect fraud before you buy, saving you from a potentially disastrous purchase. VIN Fraud Check searches through billions of VIN records to identify unusual patterns in the car’s history, letting you know if the car you’re looking at is compromised. Bundle with a Vehicle History Report for full confidence when buying a used vehicle.

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

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:

• Get a VIN Fraud Check to see if the VIN is flagged as potentially fraudulent or stolen.
  
• 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.
  
• Verify the seller’s identity: 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 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, you may want to consider the following steps:

• Get Vehicle Monitoring to see if your VIN is flagged as potentially fraudulent or stolen.
• 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 and help provide contract details.
• Notify your insurance company: Inform your insurance company about the fraudulent record(s). They need to be made aware of this fraudulent record. 

VIN fraud, or "re-vinning," remains a significant issue in Canada. CARFAX Canada, utilizing its extensive vehicle history database, leads the way in helping identify potential vehicle fraud. Tools like VIN Fraud Check and Vehicle Monitoring provide crucial insights into a vehicle's background and serve as invaluable resources for safeguarding against VIN fraud.