Canada takes new steps to fight car theft by sharing export data

Table of Contents:

• Exploration of potential future data-sharing agreements with more stakeholders
• Cloned VINs from exported vehicles used to reintroduce stolen cars
• Impact on dealerships and unsuspecting buyers
• Disagreement over privacy and data access

Exploration of potential future data-sharing agreements with more stakeholders

Efforts like these are seen as crucial in addressing a spike in auto thefts. Between 2021 and 2023, vehicle theft in Canada rose by nearly 33%, peaking at 70,475 incidents. Since then, stronger policing and policy efforts appear to be reducing crime, with reports showing an 18.6% drop in thefts between 2023 and 2024.

Cloned VINs from exported vehicles used to reintroduce stolen cars

Criminal groups often clone Vehicle Identification Numbers (VINs) from legally exported vehicles and place them on stolen cars, a method known as re-VINing. This practice makes stolen vehicles appear legitimate when sold domestically. Without proper access to export data, car dealers, buyers, and government agencies often have no way to verify whether a VIN belongs to a previously exported vehicle.

Investigations by Peel Regional Police uncovered nearly 300 re-VINed vehicles over the past year, many of which were not just passenger cars but also included transport trucks. In most cases, criminals extract VINs from online import databases hosted in other countries, exploiting the availability of foreign data sources.

Impact on dealerships and unsuspecting buyers

Dealers are regularly exposed to fraudulent vehicles, despite efforts to screen inventory. Used car sellers report encountering fake VINs nearly every week. While some are caught, others evade detection, leading to serious consequences for customers who unknowingly purchase stolen vehicles. These cars may be seized, and insurance claims voided once the fraud is discovered.

There are safeguards in place for those who buy through registered dealerships. The Ontario Motor Vehicle Industry Council (OMVIC) offers a compensation fund for customers affected by fraud. However, private buyers lack such protections, highlighting the importance of access to reliable VIN verification tools.

Disagreement over privacy and data access

The Used Car Dealers Association of Ontario has pushed CBSA for broader access to export data since April 2024. Their goal is not to make VINs publicly available but to create a lookup system allowing dealers to confirm if a specific VIN has been exported. CBSA has so far cited privacy concerns, treating exported VINs as customs information under the Customs Act and therefore restricted.

Despite this, CBSA has started limited sharing with two organizations and confirmed the first secure data transmission occurred earlier this week. CARFAX and the Équité Association have not disclosed how they plan to use the data, citing confidentiality. The Used Car Dealers Association argues for greater access, especially to support smaller dealers who may not afford third-party services.

CBSA is now considering broader data-sharing methods with more stakeholders, aiming to strike a balance between privacy and fraud prevention. This approach may lead to improved industry tools, better fraud detection, and more secure vehicle sales across Canada.

Source: CBC