Buying a used car may be a more cost-effective approach compared to buying new, but there are also some potential risks you should be aware of. For instance, an illegal practice called VIN cloning has become increasingly prevalent in recent years. Ending up with a vehicle that has a cloned VIN can be a major headache, but the good news is there are several things you can do to safeguard yourself.
Table of contents
- What is a VIN?
- What is VIN cloning?
- Why are VINs cloned?
- How does the scam work?
- How common is VIN cloning?
- What are the signs of a cloned VIN?
- How can you avoid buying a cloned VIN?
- Who should you contact if you've purchased a cloned VIN?
What is a VIN?
Quick refresher: the VIN, or Vehicle Identification Number, is the unique I.D. assigned to every car when it’s manufactured. It serves as the car’s distinct identifier containing all the essential information about its make, model, year of production, manufacturing location, and more. Think of it as your car’s fingerprint; no two vehicles have the same VIN.
What is VIN cloning?
VIN cloning happens when someone steals the VIN from a legitimate vehicle and puts it onto another vehicle, which is typically stolen. This fraudulent practice masks the real VIN of the stolen vehicle, essentially giving it a fake ID. The end result is two cars on the road with the same VIN. In other instances, there aren’t actually two vehicles only fake paperwork created to register a nonexistent car for insurance fraud purposes.
If you buy a vehicle with a cloned VIN, that vehicle is unfortunately never really yours, though you could be held responsible for any outstanding loans or liens on the vehicle itself. That’s why it’s important to report it as soon as you become aware that there might be an issue.
What is the purpose of VIN cloning?
As mentioned, VIN cloning is primarily done to mask the VIN of a stolen car, typically with the VIN of a different car from another region. Doing this makes it difficult for law enforcement officials to trace the vehicle back its rightful owner. What could make the car even more difficult to trace? Cross-country cloning. For example, this happens when the original vehicle stays in Canada, while its fake counterpart is sold in the US, making it almost impossible to track.
How does the scam work?
Often, a criminal steals a vehicle similar to the one with the legitimate VIN. Then, they replace the stolen vehicle’s true VIN tag with a counterfeit one, turning the stolen vehicle into a clone of the original. From there, the criminal outfit then sells the cloned vehicle to an unsuspecting buyer, typically under false pretenses using fake ownership documents.
How common is VIN cloning?
While VIN cloning currently affects a small number of vehicles, the reality is that this fraudulent practice is on the rise in Canada. According to the Canadian Fraud Centre, 2020 saw 109 reported cases of vehicle identity fraud across the country, resulting in losses of over $1.2 million. That number appears to be on the rise, with CARFAX Canada reporting a 63% increase in VIN cloning investigations from 2019 to 2023.
What are the signs that your car has been cloned?
The reason VIN cloning is such a persistent scam is that it’s difficult to spot. There’s often no definitive sign that a vehicle’s VIN has been cloned, however, a CARFAX Canada Vehicle History Report can be particularly helpful when it comes to flagging a VIN issue. Within a vehicle history report, there are some red flags that may indicate a potential cloned VIN:
- Gaps or missing vehicle registration information. Periods of time when there’s no registration information that’s been reported.
- The vehicle has been registered in multiple regions. It seems like the car is ‘hopping’ around province to province, or country to country in a short window of a few days or weeks.
- Additional history in other cities. If the report indicates additional damage or history in different locations that doesn’t line up with your understanding of the vehicle’s history. In these cases, the timing between historical events may also not seem plausible. Keep in mind, not all vehicle history in varying cities is indicative of VIN cloning.
- Missing history. If there are gaps in information on a report that seem suspicious, or if the seller is saying something that doesn’t match what the report is showing.
You’ll need to take a good look at your vehicle history report to see if there are any of these signs since it may be hard to spot at first glance. If you do spot one of these signs, it also might not mean the car has been cloned. That’s why this illegal activity is such a challenging issue to resolve.
How can you avoid becoming a victim of VIN cloning?
By performing the proper due diligence, you can potentially avoid becoming a victim of the scam altogether. Here are some things you should look at before closing the deal:
- Check the VIN: Before you purchase a car always verify the VIN. You can typically find the VIN on the car’s dashboard, on the driver’s side door frame, and on the engine block. You’ll also want to make sure the VIN matches the one found on the vehicle’s documents, including the title and registration. Not sure what to look for? Check out our article about where to find your VIN and how to decode it.
- Get a vehicle history report: One of the best ways to ensure the car you’re buying is the car you think it is, is to get a CARFAX Canada Vehicle History Report + Lien Check. This will give you available information on the car’s past, including accident history, service records and any outstanding loans that might be on its record.
- Verify ownership: Make sure the seller of the vehicle is the rightful owner. Don’t be afraid to ask for all of the proper documentation to validate it, including proof of ownership along with a proper government-issued photo ID.
- Be wary of suspiciously good offers: When it comes to car buying, if it seems too-good-to-be-true, it usually is. VIN-cloned vehicles are sometimes listed at incredibly low prices to attract unsuspecting buyers to offload the vehicle quickly.
- Trust your gut: If something seems suspicious, like you find spelling or grammatical errors on the documents, or the seller is evasive when you ask questions, consider walking away from the deal altogether.
Who should you contact if you’ve purchased a cloned car?
The second you suspect your vehicle has been cloned, you should contact local law enforcement immediately to protect your rights as a car owner. Provide them with all the necessary information so they can start investigating right away. It might also be a good idea to contact any companies or banks you may have associated with the vehicle and inform them of what’s happening.
Detecting a cloned car is no small feat. That’s why your best defense against VIN cloning fraud is to recognize that it’s a growing issue so you can be cautious and arm yourself with the right information before making a purchase.