CARFAX launches new tool to help dealerships spot stolen cars, fraud

CARFAX has launched a new tool that the company says will allow car dealerships to run vehicle identification numbers (VIN) to check for potential fraud or theft.

It's called VIN Fraud Check, the vehicle history report business says, and it lets dealers see if a vehicle has been reported stolen in North America, as well as if its VIN indicates potential fraud.

"VIN Fraud Check is the latest in our suite of data-driven solutions aimed at protecting Canadians and ensuring safer vehicle transactions," said Shawn Vording, president of CARFAX Canada, in a news release. 

"By working closely with vehicle dealers, local police, and the provincial government, we're equipping Canadian dealers with the tools they need to detect and avoid potential VIN fraud." 

Experts say VINs on legally exported vehicles are highly sought after by criminals, who clone the unique serial number — typically found in several locations, including the dashboard — and put it on a stolen vehicle in Canada, also known as re-VINing. Previously, with no way for dealers, buyers or provincial ministries to verify if a vehicle has been exported, some well-disguised stolen vehicles have been slipping through the cracks undetected. 

Experts say there are three main uses for stolen vehicles. Some are illegally exported, others are taken apart and used for parts and the rest are re-VINed.

CARFAX says its new system will allow dealers to run a VIN to check for potential clones, a fake VIN, or for a stolen vehicle.

Police and governments across the country have been working to crack down on auto theft, which has ballooned in recent years. Between 2021 and 2023, it increased by close to a third, reaching a high of 70,475 incidents, according to statistics from the Équité Association. Policing and policy efforts appear to be making a difference, with car thefts down 18.6 per cent between 2023 and 2024.

"Auto theft remains a serious crime in Halton region and beyond. It is largely driven by organized crime groups that stop at nothing to evade police detection, including VIN cloning to resell stolen vehicles for profit to fuel additional criminal activities," said Halton police Deputy Chief of Regional Operations Jeff Hill, in a statement.

"Technologies like VIN Fraud Check are instrumental in helping police agencies and dealers to identify vehicles being sold fraudulently, removing them from the pipeline and keeping Canadians safe."