How to Avoid the Re-Vinned Vehicle Scam
In the ever-evolving landscape of auto thefts and scams, one disturbing trend is on the rise in Canada – stolen re-vinned vehicles. This crafty deception involves changing a vehicle's identification number (VIN) to a fraudulently fabricated one, concealing that the vehicle is stolen. Thieves will alter VINs, then re-register the car and sell them to unsuspecting customers.
As a consumer, staying informed and vigilant is crucial to protect yourself from this scam when purchasing your next vehicle, whether for personal or commercial use, primarily through private sales.
According to the Insurance Bureau of Canada, auto theft-related insurance claims costs were "approximately $700 million in 2022, up from approximately $160 million in 2018, a staggering 329% increase" in Ontario. While the rise in auto thefts has many people feeling anxious about the safety of their vehicles, those who are in the market to buy vehicles must also be on high alert.
In this blog, we’ll go over the stolen, re-vinned vehicle scam and how to protect yourself against unknowingly purchasing and insuring one, which could lead to legal and financial consequences.
How Scammers Operate
A significant number of thieves will steal vehicles to ship them abroad. However, many stolen cars remain in Canada as criminals attempt to conceal the theft by affixing a falsified VIN. This "new" VIN might correspond to another vehicle's VIN or be entirely fabricated.
Criminals engaging in this scam are often sophisticated in their approach. They may use various tactics, such as obtaining stolen vehicles through theft rings and falsifying paperwork. The goal is to present the stolen vehicle as legitimate, making it challenging for consumers to recognize the fraud.
The Dangers of Re-Vinned Vehicles
Stolen re-vinned vehicles pose a significant threat to unsuspecting consumers. These vehicles might look like legitimate purchases on the surface, but beneath the shiny exterior lies a potential disaster waiting to happen. Not only does buying a stolen vehicle contribute to the overall rise in crime, but it can also lead to financial losses, legal troubles, and, in some cases, personal safety concerns.
Many customers don't know they've purchased a stolen vehicle until they have an insurance claim. To make matters worse, once the car is determined to be stolen property, the police will seize it, "leaving you without a vehicle and out-of-pocket. You also risk having any insurance claims denied by your insurance company and, if you knowingly purchase a stolen vehicle, you could be charged criminally" (Aviva).
Take Precaution When Purchasing a Vehicle
Who You're Purchasing from Matters: If purchasing a vehicle through a private seller, keep their name and contact information for your records. If you're buying through a dealership, it's a good idea to verify the dealer and salesperson's name through the Ontario Motor Vehicle Industry Council (OMVIC) website to ensure they're licensed and clear of any offence history.
Check the Vehicle History Report: Obtain a comprehensive vehicle history report from a reliable source. Services like Carfax can reveal important information about the vehicle's past, including accidents, title issues, and any reported thefts. Vehicle sellers are also legally responsible for providing buyers with a Used Vehicle Information Package (UVIP) from the MTO.
Examine VIN Locations: Familiarize yourself with the standard locations of a vehicle's VIN. Typically found on the dashboard, door frame, and engine block, a legitimate VIN should match across all locations. Any inconsistencies could be a red flag.
Verify VIN with Authorities: Cross-check the VIN with the Canadian Police Information Centre’s website, which allows consumers to look up VINs to see if the vehicle is on file as stolen. Confirming the vehicle's legitimacy through official channels can prevent falling victim to fraud.
Be Skeptical of "Too Good to Be True" Deals: If a deal seems too good to be true, it probably is. Scammers may use enticing prices to lure unsuspecting buyers. Research the market value of the specific make and model to ensure the asking price aligns with reality.
Insist on a Professional Inspection: Before finalizing any purchase, prioritize a thorough inspection by a trusted mechanic. A professional eye can identify potential issues or discrepancies that may go unnoticed by the average consumer.
As consumers, we must be vigilant and informed when making significant purchases like vehicles. The rise of stolen, re-vinned vehicles is a stark reminder that criminals constantly adapt their tactics to exploit unsuspecting individuals. By following these precautions and staying informed, we can better protect ourselves from falling victim to this growing threat and contribute to a safer, more secure automotive marketplace.
For more information on this topic, visit the Halton Regional Police’s website: Safety Tips for Purchasing Used Vehicles.
Have questions about your personal or commercial auto insurance policy or need a quote? Contact our team today at 519-370-2006 or info@tg-group.ca, and we can get you the coverage you deserve! You can also visit our Insurance page for more details.
