Since 2022, Canada has seen a surge in car thefts, driving auto-theft claims to an unprecedented $1B mark. According to the Insurance Bureau of Canada, high-end luxury vehicles are easy targets which are then illegally exported to global markets by domestic and international criminal organizations. To disrupt and dismantle auto theft, The National Summit on Combatting Auto Theft in February 2024 brought together government officials, law enforcement and industry representatives to finalize an action plan. In this group was London-based venture CARFAX Canada depicting how their technology can help identify auto thefts.
Empowering millions of Canadians to make better decisions about vehicles, CARFAX Canada aggregates automotive data to help consumers, and business partners understand the history of a used vehicle. For the past twenty years, CARFAX Canada has not only been providing detailed vehicle history reports, CARFAX Canada also has products and services to help its customers understand the history-based value of their vehicle, and enable vehicle buyers to search for liens on vehicles.
Starting their journey as CARPROOF twenty-four years ago, in 2015 the company was acquired by IHS, the owner of American based CARFAX. CARPROOF strategically rebranded to CARFAX Canada in 2018 expanding the global brand which now operates in Canada, Europe, Mexico and the United States. In 2020 IHS Markit merged with S&P Global
Acquisitions often entail significant change within a business, that was not the case with CARFAX Canada. Shawn Vording, President of CARFAX Canada stated “CARFAX Canada has consistently demonstrated sound business strategy and consistent performance. Our owners value an entrepreneurial culture and we are expected to make and execute our own business decisions. With that, being part of a larger organization has positively influenced numerous focus areas for us” adds Vording. One of those important focus areas for CARFAX Canada has been in Technology. Their multi-year technology plan includes a three-pronged approach that speaks to increasing scalability, stability, and security to ensure sustainable and accelerated growth for their business.
For software and data companies, a strategic growth plan requires a corresponding multi-year technology plan. While this may sound simple, technology companies often face the challenge of balancing planned growth with opportunistic growth which usually happens in a more ad-hoc manner. At CARFAX Canada, Vording mentions that their team maintains a startup mentality to drive ideation and also plans long-term in technology to ensure scalability at the same time. “We have taken a long-term look at architecture in general whether that’s application development, security, database, or cloud. We have done this to ensure that we are building for the future, not just for the next feature or product launch.”
CARFAX Canada’s core product is its Vehicle History Report. When a user inputs a 17-digit Vehicle Identification Number (VIN), a database query returns all relevant data which is displayed in report sections including registration history, accident and service records, stolen vehicle status, open safety recalls, and more.
Leveraging this existing technology and database CARFAX Canada has developed a new feature to help identify cloned vehicles. VIN cloning happens when someone copies a VIN from a legitimate vehicle and fraudulently attaches it onto another vehicle to hide its true identity which is typically a stolen vehicle. With the increasing number of stolen cars in Canada there is a corresponding increase in the number of cloned vins. CARFAX Canada is able to provide a cloned vin indicator when a vehicle is generating history records in two separate jurisdictions at the same time. “With CARFAX Canada’s access to vehicle data across North America, we can identify a vehicle that is living two separate lives in two separate places. For example, if a car is registered in Ontario and is being serviced in London, and at the same time is registered in Georgia and is being serviced in Atlanta, one of the two vehicles is a clone.
The ability to generate this insight brought CARFAX Canada to the table federally to provide more insights into the rising car theft epidemic in Canada. “We know how many vehicles are being stolen in Canada and as aggregators of history data across North America, we can help prevent the registration of cloned vehicles” stated Vording. From being invited to participate in the National Summit on Combatting Auto Theft to testifying in the House of Commons about this growing problem, CARFAX Canada was partnered with not-for-profit industry fund, Équité Association and Insurance Bureau of Canada to understand the intensity of the issue through the lens of the other stakeholders.
“Our products cannot prevent theft, but they can help identify theft and fraud. So, while Police and Canadian Border Security work to prevent the theft and export of cars, we are preventing the exchange of those cars to an unknowing buyer; whether that is a dealer, consumer or any other party,” shares Vording. As Canada faces the growing challenge of auto theft, the innovative solutions provided by CARFAX Canada stand out as a vital tool in combating this issue. Leveraging technology, data, and collaboration, CARFAX Canada empowers stakeholders across the automotive ecosystem to detect and disrupt theft while safeguarding consumers, businesses and Canada’s economy alike.
To know more about CARFAX Canada, visit their website here.
