In Part 1, we explored the growing threat of VIN fraud and why awareness matters. Now, let's turn to practical solutions that can protect your dealership and build customer trust.
Customers are getting proactive
Buyers who are familiar with VIN fraud aren't sitting idle. Most (57%) are already taking steps to protect themselves — whether it’s checking ownership records or matching a VIN to a vehicle’s documentation.
This means that savvy consumers are scanning listings and visiting dealerships with fraud detection practices on their checklist.
Standing out from the competition
When we asked buyers how VIN fraud checks would affect their purchasing habits, the results were striking: eight in ten (81%) said they would feel significantly or somewhat more confident purchasing from a seller who clearly advertised a practice of checking for VIN fraud on every vehicle.
Offering increased protection for your customers can be a powerful market differentiator.
Building an effective process
Effective VIN fraud detection requires going beyond visual inspections and paperwork. Dealerships have varying levels of familiarity with VIN fraud. In a recent survey with dealership representatives across Canada, we found that while most are at least moderately familiar (64%), nearly one in five are not at all familiar with the term. If managers and staff are operating in the dark on VIN fraud, each vehicle in your lot is carrying unnecessary risk.
A comprehensive approach should include:
- Staff education and training: Ensure your acquisition and sales teams understand the ins and outs of VIN fraud and can recognize red flags when acquiring new inventory.
- Pre-acquisition checks:
- Compare the physical VINs on the vehicle (dashboard, driver's side door frame, etc.) against documentation.
- Verify that the seller ID matches ownership documents.
- Run a lien check to ensure debtor information lines up with ownership records.
- Use CARFAX Canada VIN Fraud Check to detect anomalies in the vehicle’s history that indicate potential fraud. We search through billions of VIN records to identify signs of potentially fraudulent activity.
Communicating your commitment
With a verification practice in place, make sure your customers know by marketing VIN Fraud Checks prominently on your website and listings, training sales staff to explain your process, and providing documentation showing the checks performed on each vehicle.
Moving forward with confidence
VIN fraud detection isn't just about customer confidence — it's also about protecting your dealership from financial losses and reputational damage. By implementing a comprehensive verification process and communicating your commitment to customer protection, you're building trust, creating safer transactions, and standing out from your competitors.