Carfax Canada has launched a new tool in Ontario that it says will alert auto dealers to fraud involving Vehicle Identification Numbers (VINs) before stolen vehicles are sold to unsuspecting buyers.
The VIN Fraud Check tool will inform vehicle dealers if a VIN contains “data indicating potential fraud” or if the vehicle has been reported stolen in North America, the organization says.
“There has been a dramatic increase in recent years in auto theft,” Shawn Vording, Carfax Canada’s CEO, said during a news conference in Halton Region on Wednesday.
“Now more than ever, Ontarians need ways to help protect themselves against VIN fraud and the complications and financial impacts that go along with it.”
Vording said Carfax estimates that there are 127,000 fraudulent, cloned VINs registered in the province.
Police forces in the GTA have reported an influx in VIN frauds in recent years as auto thefts soar across Ontario and the country.
Last year, Toronto police announced details of an alleged scheme involving ServiceOntario employees who police say used fake documents to register phony VINs to legitimate licence plates.
The uptick in fraud prompted the Ford government to introduce new legislation that, if passed, would create a new provincial offence for fraudulent vehicle registrations, an offence that could lead to jail time and penalties of up to $100,000 if convicted.
The VIN Fraud Check tool will be available at no extra cost to dealers who access vehicle history reports through Carfax.
“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,” Vording said in a news release.
Correction
A previous version of this article stated Carfax Canada's CEO is Sean Vording, when his name is Shawn Vording.
