"Cloned" Vehicles expose Dealerships to Fraud

[XDCX]

A report out of Canada indicates that as many as 25% of all stolen vehicles in the Nova Scotia area may be "cloned."

Police discovered a sophisticated operation that "cloned" stolen vehicles by using VIN numbers from vehicles registered in the United States. To the extent that the U.S. and Canada do not check for duplicate VINs it's possible to have a Title and Registration for the same VIN in both countries.

A Canadian Dealership recently took a "cloned" vehicle in on trade and then re-sold it. When police determined the vehicle was stolen the dealership was obligatged to reverse the transaction and bear the expense of the fraud.

I believe that most dealerships would be a victim of this type of fraud. If a customer's trade vehicle has a valid Registration and Title that matches the VIN why would you look any further?

Here's a link to the news report: http://thechronicleherald.ca/NovaScotia/1040513.html

[SHACOS]

If the VIN plate is bent and the sticker on the driver's side door sill looks freshly placed there, DON'T BUY THE VEHICLE!

[XDCX]

Originally Posted by SHACOS

If the VIN plate is bent and the sticker on the driver's side door sill looks freshly placed there, DON'T BUY THE VEHICLE!

That's good advice, but these guys looked like they were professionals.

The report indicated that the fake VIN Plates looked genuine and even had the Factory-style rivets.

The report also alleged that the criminals forged dealership documents to get the vehicles licensed and titled. (My guess would be that they forged the MSO since that would be the beginning of the paper trail and less likely to create a possible "trip" point.)

A CARFAX report would probably help alert a Sales Manager to a potential "Clone" vehicle, but how many dealerships run a CARFAX report on each trade vehicle?

[bluechevrolet]

We run a CarFax on EVERY trade we take in. Mainly checking for odometer discrepencies or reported accidents.

It should be a practice for every dealership.

This stinks!

[SHACOS]

Does CarFax report activity in Canada? I know Canada has it's own version of CarFax and I wasn't sure if they "talked" to each other.

[XDCX]

Originally Posted by SHACOS

Does CarFax report activity in Canada? I know Canada has it's own version of CarFax and I wasn't sure if they "talked" to each other.

That's a great question - I'll see if I can get an answer.

[XDCX]

Originally Posted by XDCX

That's a great question - I'll see if I can get an answer.

I checked the CARFAX website and verified that they receive Accident Data from all of the Canadian Provinces but it was not clear if they received Registration Information.

I sent them an e-mail to determine the answer and I'll report back when I get an answer.

[XDCX]

I just received an e-mail from CARFAX and they totally failed to answer my question. (It was just a form letter indicating where they get their accident data and how often the data is reported.)

It's like they didn't even read my e-mail.

I sent them a nice response back asking the same question - I'll report back when I get an answer.

[SHACOS]

Lithia uses AutoCheck from ADP, which is basically the the same as CarFax, just a lot cheaper. Maybe the ADP people read emails.

[XDCX]

Originally Posted by SHACOS

Lithia uses AutoCheck from ADP, which is basically the the same as CarFax, just a lot cheaper. Maybe the ADP people read emails.

I think that the CARFAX people read the e-mails, they just don't comprehend them.

I received a reply yesterday indicating that "CARFAX receives vehicle registration information from some states but not all."

I'm thinking - Canada doesn't have states - they have provinces.

I sent an e-mail back asking for clarification - was her answer referring to the U.S. or Canada?

I'm still waiting for an answer.

[BillHeart]

AutoCheck also catches a lot more stuff than CarFax, I just caught a trade with unibody, clean CF, obvious paint and bodywork on RR 1/4, AutoCheck showed it sold at auction with frame announced.

[XDCX]

Originally Posted by BillHeart

AutoCheck also catches a lot more stuff than CarFax, I just caught a trade with unibody, clean CF, obvious paint and bodywork on RR 1/4, AutoCheck showed it sold at auction with frame announced.

That's interesting information. I would have assumed that the databases would be almost identical. That's a nice testimonial for AutoCheck.

[XDCX]

Well it took three e-mails but I finally got an answer from CARFAX about registration information from Canada.

CARFAX indicates that they receive registration information from all of the Canadian provinces with the exception on Alberta. They added that the registration information also includes title branding - e.g. salvage, junk, etc.

Bottom line: It appears that CARFAX would protect you from a Canadian clone as long as the vehicle wasn't registered in Alberta.