How planned registration upgrades can trim Alberta auto theft

Insurance Bureau of Canada recommends a series of mitigation measures for Alberta to undertake to reduce theft and claim rates. First on that list is the removal of a VIN override in the province’s vehicle registration system.

There has been a steep jump in Alberta auto theft claims — up 65% over the past three years, finds a new IBC report. Large cities have been hit hardest and insurance claims related to auto theft reached $110.3 million in 2024, compared to $67 million in 2021.

Processes to change an automobile’s vehicle registration number (VIN) have long been used to fraudulently register stolen vehicles. And recent improvements in VIN forgery techniques used by criminals make it difficult for car buyers and motor vehicle registries to spot fakes.

“The VIN override button used to be more of a problem back when the bad actors were not capable of generating a VIN that appeared legitimate,” Sid Kingma, Équité Association’s director of investigative services for Western Canada, tells CU.

“Now the bad actors are much better at creating a fictitious VIN that can fool the system, the override function at the registries is not utilized as much as it once was.”

But what is a VIN override, and why would a person behind a motor vehicle registration counter be able to work around the system? For starters, it’s nothing nefarious, says Tim Morrison, IBC’s director of government relations for the Western region.

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“This VIN override was…necessary for certain circumstances, like classic cars. You plug in a VIN from whatever year, the 1960s, [and] it was different than [number and letter sequences used] today. You needed the override to register the vehicle,” he tells Canadian Underwriter.

Alberta’s motor vehicle branch offices were privatized in 1993, according to a spokesperson at the office of the Minister of Infrastructure.

Plus, notes Morrison, auto theft has become more of a mission critical issue in the province over the past five years.

But now it’s solidly on the radar and Morrison says IBC is working with Alberta’s government to flag issues. He says the province is aware of the need to ensure the vehicle registry system doesn’t exacerbate the theft problem.

“Auto theft has become a bigger problem for, not just insurers, but for consumers and governments. And now governments are taking a closer look at some of these loopholes that exist, and we’re certainly happy to help work with them and point them out,” he says.

“The criminals will find these holes and exploit them.”

Related: How auto crime, vehicle crashes are trending in B.C.

And the minister’s office acknowledges change must come.

“The current motor vehicles registry system, known as MOVES, was created nearly 40 years ago and despite many upgrades, it is nearing the end of life,” the spokesperson tells CU. “That is why Alberta’s government has embarked on a modernization of the system. The roadmap for the modernization envisions a full replacement of the current MOVES system with Arizona’s MAX solution through an innovative, code sharing agreement. 

“As we modernize our system, we will be exploring options to make improvements to all processes, including Vehicle Identification Number overrides.”

Further, the ministry is collaborating with law enforcement to bolster protections around third-party vehicle registrations. “The new requirements reduce fraudulent activity by providing more stringent criteria to confirm and validate third parties,” the spokesperson says.

Phil Porado

Phil, an award-winning journalist with over 30 years of experience in financial topics, has been managing editor of Canadian Underwriter for more than three years.