Document 2862527

Hamilton. July II. 200N
MA,RQUAGE A N Tl " O L
SHERLO CK INC
"
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Rc : Ontario Auto Insurance Five Year Review
•
Dear Mr. Handler.
450 614
••
Mr. Willie Handle r
Se nio r Manager. Auto mo bile Insurance Poli cy Unit.
Fina ncia l Services Commission of Ontario
5160 Yonge Street. 15th Floor. Box 85
Toronto. Ontario. M2N 61.9
" • •
6
According to the Insurance Bureau of Canada (lBe) "Automobile theft is much
mo re than an insurance problem; it's an expensive socia l menace. Every year
automobile the ft costs Canad ians close to $ 1 billion. incl udi ng $600 mi llion for
insurers to fix or repl ace sto len cars. $25 0 million in pol ice. health ca re and
court system co sts and millions more in correc tional services." (Append ix # 1)
Current estimates show that approximately 50 percent of the thetis in Canada
occur in Ontario and co st the Prope rty and Ca sualty (P&C) Insurance Industry'
and ultimately the Insurance Consumer of Ontario over $200 million annuall y.
As documented by Statistic s Canada and the RCt\,1P. the national rate o f a uto
theft is 56% higher today than 20 years ago . and is rapidly shifting away from
bei ng a random act toward organized crime rings.
The Government in Ontario is al so very concerned that fraud and abuse have
become a significant factor in rising au tomobile insurance prem ium s. ThL.' me
has est imated that at least 15 per cent of On tario vehicle premiums arc di rectl y
attr ibutable to costs incurred due to frau d and au to theft. The On tar io Cr ime
Control Commiss ion support s this figure. In 2006. 38398 vehicl es were stole n
in Ontario and 38.821 in Quebec. In the past me states Ontario recovered 90
per cent of its sto len vehicles. but today it's onl y 70 per cent. The recovery rate
in Quebec is only about 50 per cent
However. contrary' to other provinces such as Quebec. the Insuran ce Co nsume r
o f Ontario . in general. docs not benefit from premium discounts \\ hen they
purchase after market theft deterrents to protect their inve stment. At present
Ontario con sumers obtain a premium d iscount if their vehicle is equipped with
an approved mc immobilizer and some Insurers do prov ide s mall premium
di sco unts for individ ua ls who insta ll afte rmarket the ft preventive or tracking
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In the fight to deter theft, the immobi lizer is now mandatory equipment on all
vehicles in Canada produc ed after Sep tembe r 2007. The immobilizer is VCr)
effec tive method in preventin g thefts of co nvenie nce (joy- rides) hut docs veT)
little to deter the theft of vehicles by organized crimi nal groups who steal the m
fo r re-sale, to he d ismantled for parts or exported to other count ries ove rseas.
As ment ioned at present so me insurers do give small discounts for particular
after market deterrent systems hut most consumers do not feel the investment in
such systems and the small discounts that are allotted justify the cost and effort
req uired to have such systems installed. The Insurers on the other hand state that
some: o f the: present rsco guidelines and lor regulations deter them from giving
larger discounts fo r effective vehicle theft deterrent s. The present situation docs
little: to help prevent vehicle thefts in Ontario and ultimatel y docs not help
red uce premiums for the Ontario consume r.
In orde r to help dete r vehicle thefts in Ontario we suggest that consideration
should be given to allowing the Ontario P & C Insurers the latitude to give
appropriate premium discounts on recommend and proven effective aftermarket
theft deterrent systems. These discounts cou ld be given on po licies on high-risk
vehicles (S uch as those listed on the me Annual Top Ten Most Stolen Cars ­
Append ix # I.). Thi s wo uld have a three (Jj-prong effect:
1) I leip redu ce vehicl e theft
2) Reduce: the overal l cost of theft to Insurers
3) Reduce premi ums to Ontario Consumers
There arc various theft deterrents on the ma rket with varying degrees of
effectiveness. Ove r the past several years the Canad ian Co uncil of Motor
Transpo rt Administrators (CC MTA) through its Drivers and Vehicles
Co mmi ttee has prod uced a co mprehensive study o n various ways to prevent
vehicle then. Thi s study "The Best Practi ce Model s for Combating Auto Th eft'
(Appendix #2) was approved on October 3 1. 2006 and revised in Nove mber
20U7. This document out lines various methods and syste ms that can effectively
be used in combating "chicle theft and related frauds. One of the most effective
methods. mentioned in the report. is Intensive Parts Marking detailed on page
14 of the report. The Sherlock Antitheft Marking Inc. (Sherlock), which was
established twen ty-five yea rs ago markets and se lls this method in Quebec.
Ontario and the At lantic Provinces. In Quebec stud ies have proven that
intensivel y marking a vehicle does deter the ft and therefore help s insurers 10
control premium costs on the comprehensive porti on of a po licy. A great
majori ty of Insurers in Quebec give prem ium discounts and in some cases pay
lor the install ation of the system or make it mandatory. The Automobile
Protection Association (A PA) recommends the She rlock Intensive Marking
process as the most effective deterrent against vehicle theft.
It should also be noted that Insurance Information Inc. in the United Slate s
reports that in nine (Q) states regu lations require insurers to provide car 0\\ ncr s
who equip thei r au tomobiles wit h anti -theft devices and/or systems with
discount rang ing from 15 10 36 percent o n the co mpre he nsive port io n o f the
po licy. (www.iii.org/mcd ia/h ottopics/insuran cc/tcst-l/ )
In conclusion. it would be beneficial for the: insurance consumer of Ontario if
FSeO would adopt a policy that would enable the P&C Insure rs of Ontario to
provide premium discounts or premium credits for con sumers that have
approved or recommended anti -theft deterrents on their "chicles. If you require
any further detail s on our proposal o r thc Sherlock Intensive Ma rking System. I
am ava ilable to meet you and or members o f the committee involved in the Fin'
Year rev iew of Pan Vi ol' the Insuran ce Act.
E~~
GeTT)' Garand
Manager. Business Development (Ontario)
Sherlock Antitheft Marking Inc.
107 Ewen Rd.
Hamil ton. Ontario - L8S 3C3
Cc : Pierre-Pau l Jodoin - President Sherlock A ntitheft Ma rking Inc.
And re Drolet - National Director Business Development - Sherlock
Antitheft Marking Inc.
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APPENDIX # 1
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D U CAIIAOA
Top 10 Most Stolen Cars
Auto mo bile theft is much more than an insurance problem ; it's an expensive social menace .
Every year automobile theft costs Canadians close to $1 billion , including $600 million for
insur ers to fix or replace stolen cars, $250 million in police . health care and court system
cos ts and millions more in correctional services expenses .
Thieves generally steal cars for one of four reasons :
1. Fo r s ale ab roa d - Within an hour of its theft and wit h its VIN still intact, the car is packed
in a shipping container and sent abroa d with false export documents. Stolen cars are shipped
to Eastern Europe, Russia , the Middle East , South America , the Caribbean. Africa and
Southeast Asia . Upon arrival , these stolen vehicles are sold for many times their original
market va lue .
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vehicles going?
( 2 min. 11 sec.)
2. For sale to uns u specti n g con sum ers - The vehicle may be given a new identity w Ith
false vehicle identification number (YIN ) to hide its origin . 1t will then often be sold to
unsuspecting consumers . It also can be dismantled and sold for parts.
a
3. To get somewhere - This is more commonly, but inappropriately . referred to as
"Joyriding: but auto theft , of any kind or wi th any intention . is still a crime and innocent people
do get hun or killed .
4. To com m it another crime - Why would a thief use his or her own vehicle when he or she
ca n steal one and use it? These cars are often recovered - abandoned and badly damaged
- within 48 hours .
And th e thieves have favourite cars too.
Eve ry year, IBC publishes a list called " The Top 10 Most Stolen
Cars." See if your car is a potential target.
2007 I 2006 I 2005 I 2004 I 20Q3
How ofte n yo ur make and model of car is stolen is one of the factors insurers use to set your
insurance premium . It's a good idea to check out these lists , as well as the publication . How
Cars Mea sur e Up: How theft, col lisio n and other clai ms affect the cost 01your car
insurance . y,;. j
1\8ack to to p
http://v.!v.w .ibc.ca/enll nsurance_Crimerr op_Ten_ Stolen_Cars!
II !07/ 2110X
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Top 10 Most Stolen Cars - 2007
Hon da Civics again at top of Canada 's Top Ten Stolen Vehicles
list: List ill ustrates new trends in organized auto theft
December 19 • 20 07
Toronto - Ca nada's car insurers announced today th at the 1999 and 2000 Honda Civic SiR
2-d oor have topped the list of the most frequently sto len vehicles for the third year in a row .
These two models also appear in the list of highest theft claims costs per ve hicle , as number
three and number five , respec tively . The 2004 Subaru Im preza WRXNt/RX STi 4-door all ­
wheel-drive comes in third place on the most frequently sto len list , and 'wins" the number
one spot on the highest theft claims costs list.
The Top Ten Sto len Veh ic les are :
1. 1999 Honda Civic SiR
2.
3.
4.
5.
6.
7.
8.
9.
10 .
z-coor
2000 Honda Civic SiR 2-door
2004 Subaru lmpreza WRXflNRX STi 4-door AWD
1999 Acura Int egra 2-door
1994 Dodge/Plymouth Grand Ca rava nNoyager
1994 Dodge/Plymouth Grand CaravanNoyager AWO
1994 Dodge/Plymouth CaravanNoyager
1998 Acura Integra 2-door
2000 A udi IT Quattro 2-door Coupe
1994 Dodge/Plymouth ShadowlSundance z-ooor Hatchback
As in previous years , none of the top te n on the most frequently sto len list had an electronic
immobilizer meeting th e Nat ional Standard of Ca nada (ULC -S338198) . Immo bilizers meeting
this standard cut three vital circuits - the start er, the ign ition and th e fuel. On September 1,
2007 , a new feder al regu lation took effect requiring Ca nadian manufacturer s to equip all new
cars , vans, light trucks and SUVs w ith elec tronic immo bilizers .
~We
all know that immobilizers are effective at reducin g auto theft. Their effectiveness has
been backed up by numbers year after year.' said Rick Du bin , Vice-President , Inves tigations ,
Insurance Bureau of Canada (IBC). "Honda Civics are a good example. Newer year models
in wh ich Honda did install immobilizers meeting the National Standard of Canada appear
much lower on the list."
IBC investigation s and the recovery of stolen vehicles over the past few years illustrate an
alarming trend tha t is becoming all -too pre valent in Canada. Organized auto theft rings are
targeting high -end or desirable ve hicles wi th the intention o f exporting them overseas or
chopping them for parts .
In that regard , the 2007 list shows three 2001 A udi Quattro model s appea ring in the top 30
most frequently stolen ve hicles
hnp :/Iww\\'.ibc.ca/enllnsurance_ Crime!fop_Ten_Stolen_CarsI2007.asp
11 /07/2008
Top 1() Sto len Cars - 2007
' These models have moved up an average of 26 spots from their posit ions in the 2006 list,
showing that the relative demand for these high-end , desirable models is increasinq ." said
Dubin.
Also increasing in freq uency are thefts of newer 4-wheel d rive vehicles. IBC inves tigators
have observed that these utility vehicles are often exported to countries with rough terrain,
such as those in the Middle East and Africa
Dubin said , "IBC has been very succe ssful in repatriating many of the se high -end stolen
vehicles from ove rseas, but more need s to be done to prevent Canadian vehicles from being
stolen and exported in the first place ."
Recognizing that auto theft is a serious and violent crime , IBC is urgi ng the federa l
government to pass Bill C-343, which wou ld act as a deterrent by ma king auto theft a
separate offence under the Crimi nal Code . IBC also continues to advocate partnerships with
local law enforcement and a dedicated presence of Canada Border Services Agency and IBC
at key Canadian ports to help stop stolen vehicles from leaving the country .
"Auto theft costs Canadians more than $ 1 billion a year and all too ofte n leads to the serious
injury and/or dea ths of innocent Canadians. This is not ju st a property crime. It is a safely
and security issue for all Canadians . Auto theft has been shown to support organized crime
and is believed to fund terrorism ." said Dubin,
The Least Stolen Vehi cl es were :
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
(tie) 2003 Buick Le Sabre 4-door
(tie) 2003 Cadi llac Dev ille 4-door
(tie) 2002 Ford/Mercury Crown Victoria/Gra nd Marquis 4-door
(tie) 2000 Satum SW1 Wagon
(tIe) 2000 Lincoln Continental 4-door
(t.e) 2000 Volvo 670 4-door
(tie) 1998 Hyundai Accent a-door
(tie) 1997 Buick Regal 4-door
(tie) 1996 Buick Park Avenue 4-door
2001 Toyot a Highla nder 4-door 2WD
The data on stole n vehicle frequency is based wholly on actual insurance claims inform ation
collected from com panies that write almost 100% of all automobile insurance in Ca nada. This
data can be found in the 2007 release of IBC's "How Cars Measure Up: wh ich co mpares the
insurance claims recor ds of the most popu lar models of ca rs. passenger vans, SUVs and
pickup trucks across the country , Consume rs ca n also access information on the best and
worst models according to collision, com prehensive and theft claims cost expe rience . This
information can be extremely useful to consumers before they actually buy either a new or
used car. "How Cars Measure up' is designed to help co nsumers understand how theft ,
collision and other claims costs affect insurance premiums. For more information , visit IBC's
website at www.ibc.ca and click on "How Cars Measure Up" under "Quick Links."
Insurance Bureau of Canada is the national trade associ ation of the property and casualty
insu rance industry. Its memb er companies provid e nearly 95% of the private home, ca r and
business insurance sold in Ca nada,
-30­
For more information or to arrange an interview with Rick Dubin , Vic e-President,
Investigations, IBC , please contact Ellen Woodger at 416-4 83-2358 or James Geuzebroek
http://\\\\\\'.ihc.caJenllnsurancc_Cri merrop_·I·cn_Stolen_CarsJ2007.asp
I 1107/21111X
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CCMTA Best Practice Models for
Combating Auto Theft
Version 6.1
October 2006
(Revised November 2007)
Prepared for CCMTA
By Anti Auto-Theft Project Group
Best Pract ice Models for Combating Auto Th eft
Table of Contents
1
Introduction
2
Problem Statement
3
Project Group
4
Best Practice Models.......
.
.
..
..4
... 5
. ._._
_. _.
6
Best practice model for registering out of jurisdiction vehicles ..........................
6
Best practice model for enforcement initiatives ..
7
Best practice model for use of auto theft devices .._
_
_
10
Best practice mode l for young recidivist car theft offender programs
11
Best practice model to ensure secure idennncanon of motor vehicles
12
Best practice mode l to create high public awareness
15
Best practice model for vehicle inspection programs
16
Best practice model to safeguard against identity theft
5
3
_
_._ ._._ ._ ._
_..........................
References
17
18
November 15. 2007
Page 2 of 18
Bes t Practice Mod els for Co mb ati ng Auto Th eft
1
Introduction
Best practice models draw on the lessons learned from the review and evatuato n of similar successful
projects and are informed by research and the wider literature on best practce approaches ,
This document will address the issue of stolen vehicles and suggest the best practice models to reduce
vehicle theft . to fulfill the remaining item of the Ant i Auto-Theft Project Group mandate
As background , on October 29.2001. Canadian Council of Motor Transport Administrators (CCMTA) held
a special session to address the issue of stolen vehicles and the role provmciasterntona! vehicle
registrars could play in reducing vehicle theft , Seven teen prionty items were identified from the session .
Four areas were selected as items that registrars and CCMTA could address and make positive changes '
•
Identify potential stakeholders and develop an infrast ructure to facilitate the exchange of data
and expertise.
•
Develop national standard procedures for registering out of jurisdiction vehicles to produce a
standard best practices guidelines document
•
Review the CCMTA Stolen and Wrecked Vehicle program to ensure Jurisdictions are compliant
and to recommend any changes or improvement to the program and potentially update the
agreement
•
Eva luate the mandatory use of IRE by all Canad ian jurisdictions
November 15. 2007
Page J of 18
Best Practi ce Mod els for Combating Auto Theft
2
Problem Statement
In Canada in 2004 , approxImately 180,000 incidents of motor vehicle theft were reported to police - an
average of 493 vehicles a day .
Automobile theft IS much more than an Insurance problem ; It'S an expensive social menace that every
year costs Canadians close 10 $1 billion : $600 mllhon for Insurers to fix or replace stolen cars , $250
million in police , health care and court system costs , and many more millions of dollars In correctional
services expenses 1
The auto theft issue defies all boundaries: jurisdictional, ootmcal. geographical or administrative Because
of the changing Irends and comp lexity of the issue, the auto theft fight requires the cooperation and
involvement of many stakeholders.
As the vehicle theft landscape continues to evolve , so must the search for innovative solutions to combat
the activities of determined vehicle thieves
What hap pens to a stolen ca r?
A stolen vehicle generally meets one of four fates
1 It may be dismantled completely or partially for parts ,
2. It may be given a new idennty with a false Vehicle ldentmcanon Number (VIN). To hide the car 's
Origin, It win then be transferred to another province or to the umted States for sale
3. It may be packed in a shipping container and sent abroad with false export documents
4 It may be taken for transport ation or used in the commission of a crime
1
Except from the Insurance Bureau of Canada's websue - Report on Auto Theft - August 2006
November 15,2007
Page 4 of 18
Best Practi ce Mod els fo r Combating Auto Th eft
3
Project Group
The Canad ian Council of Motor Transport Administrators is an organization established by the provincial,
territorial and federal govemments and related agencies to act as a neutral and independent coo rdinating
body in all matters dealing with the administration, regulation and control of motor vehicle transp ortation
and highway safety . Since 1993. private organizations have had the opportunity to become associate
members of CCMTA.
The CCMTA includes three separate and distinct standing committees to accomplish its objectives. The
committees are Drivers and Vehicles , Compliance and Regulatory Affairs , and Road Safety Research
and Policies The Anti Auto Theft Project group reports 10 the Drivers and Vehicles Standing Committee.
This committee will continue to provide a forum for discussion and introduction of new ideas and
strateg ies as they relate to auto theft
The project group has worked actively with police , insurers . the motor trades . vehicle manufacturers.
registration authorities and justice agencies to produce a range of best practice models to reduce vehicle
theft. A dec ision regarding implementation of the models is up to the individual jurisdiction . as each will
be faced with issues of competing priorities for available resources , Additionally , the demographics
relating to the auto theft problem may vary from jurisdiction to jurisdiction .
The anticipated outcome of the implementation of the models is to make vehicles more difficult to steal.
close the loopholes that professional thieves exploit . improve the flow of police and reqistranon
informati on nationally . and lead young offenders away from vehicle theft. As the dynamics of vehicle theft
invariably change over time . the group will remain open to new strategies and amend or add to this
document
November 15, 2007
Page 5 of 18
B est Practi c e Mod el s for Combating Auto Th eft
4
Best Practice Models
Best practic e model for reg istering out of j uris diction veh icles
Registration authorities can take an active role in reducing vehicle theft by making it more difficult for
cnmmels 10 fraudulently register stolen vehicles . Registration authorities need the support and ongoing
commitment of key stakeholders such as Insurers, motor trade orqaruzanons. automobile associations .
law enforcement. government agencies. and vehicle manufacturers
Ideally, all jurisdictions should standardize registration procedu res (e.g proof of identrty and proof of
entitlement) and require compulsory notification of written off vehicles .
Some suggestion to sta ndardize registration procedures are :
1. Ensure all foreign vehicles go through the Registrar of Imported Vehicles Inspection Program
before the vehicle is registered in Canada
2. Accept only original documents required for registration.
3 Establish a process to record and verify odometer readings
4
Car dealers should not be permuted to register or transfer vehicles online, unless appropriate and
effective audit processes are in place
5. Capture all intormano n from temporary reqetrencn permits on a database
6
Ensure Canadian computer systems decode the VIN to ensure il is a valid number.
7
Complete an exploded IRE search" of all out of junsdiction vetucles (The lnterprovtncat Record
Exchange (IRE) IS a network developed and managed by CCMTA, wtncn connects the driver and
vehicle databases of all Canadian junsdcnon molor vehicle departments. to provide for the
electronic exchange of information between these jurisoicnons.)
8 Disallow the active registration of the same vehicle in multiple jurisdictions. This can be achieved
through preventing duplicate VI Ns , by junsdictions that track vehicles by VI N Additionally . a
procedure should be In place to address this issue if it arises when registration is requested .
9 . Physically inspect every out of jurisdiction vehicle to verify V IN integrity and documentation . All
out of province vehicles . rebuilt vehicles, and salvaged vehicles should be checked by qualified
inspectors trained in vehicle identification and re-numbering methods .
An altemauve would be targeted identity and safety inspections of high risk vehicles . High nsk
vehicles include
•
repairable written-off vehicles
•
vehicles with damaged or missing identrhers
•
personal imports
•
rebuilt vehcles
•
stolen
or recovered vehicles
10 Ensure the database of stolen vehicles is checked for every reqrstranon
• The exploded search allows for a check of all junsdictions and . since October 2006, RIV , CPIC Stolen
Vehicles and Insurance Bureau of Canada
No.. . ember 15. 2007
Page 6 of 18
Best Pra ctic e Models fo r Combati ng Auto Th eft
Best practice model for enforcement initiatives
Ded icated Law Enforcement Auto Th eft Teams
Implement junsdcnooaltaw enforcement teams focused specifically 10develop strategies to reduce auto
cnme. The teams would oversee and coordinate all law enforcement activities relallng to combating auto
theft The teams would consist of independent mumcpar departments, law enforcement agencies . and
insurance investigators The emphasis would be organized cnme investigations such as chop shops , re­
VINing, vehicle identrtcenons. exporting . and fraudulent claims and targeted enforcement.
Street Enforcement Teams
These tactical surveillance teams would :
•
•
•
•
•
•
Identify and apprehend dangerous and prohftc car thieves
Work Joint forces operations with othe r police agency's auto theft sections or property crime
teams
Conduct surveillance until the suspects exrt the vehicle before making an arrest thereby
eliminating vehicle pursuits and rammings
Attempt to disable by pulling spark plug wires or fuel fuses prior to departure
Use "show cause" reports to have offenders remanded in custody until trial
Use various toots such as night vision . infrared cameras and flashers. and covert GPS to assist
surveillance
In
The dedicated law enforcement auto theft teams should have full-lime media relahons officers who :
• Ensure that auto theft awareness . education, and prevention remain in the forefront of public
attention
• Develop and implement proactive communication strategies
• Conduct press conferences and media bneflngs
• Represent the learns at special events
• Coordinate media releases and events for provincial aula come related programs
• Work in partnership With Internal and external partners
Pol ice Traffic Heli copters
Police traffic heucopters are an invaluable tool to reduce auto crime. They are used in pursuits, street
racing, impaired driving, auto crime. and other high fisk cnmmal offences.
Bait Cars
A bait car is a generic term used for a vehicle that has been rigged by a law enforcement agency With the
intent of capturing car thieves Special features include bullet-proof glass: automatic door locks : video
cameras that record audio. time . and date; and the ability 10disable Ihe engme remotely. The practice
does not violate entrapment laws, since the suspect is not persuaded to steat the vehicle by any means
other than their own motivation . The bait car is a phenomenon in the study of criminal behavior since it
offers a rare glimpse Into the actions and reactions of a suspect before, during and after the crime _Unlike
other crimes caught on surveillance cameras. suspects at least initially believe and react as If the come
has been successful, until the bait car is retrieved 2
2
wlklpedia.org
November 15, 2007
Page 7 of 18
Best Pr actice Models for Combat in g Au to Theft
Bait cars are usually equipped with GPS tracking systems . BM car programs increase the level of
enfo rceme nt through the use of technology rat her than Increased manpower. They also meurmze the
danger to po lice and the public by avoiding pursurts and rammmqs . \'\/hen supported by a broad based
med ia and marketing campaign, these programs can result in long term reducnons in auto crime ecn....lty
In order to ensure the success of a ba it car program. the following practices should be implemented
•
Implement an aggressive media and marketing program. This can plant the seed that there are
far more ba it cars In place than there actu ally are
An effective program coul d include television , radio , and newspape r advertrsmq as well as
banners , posters , and bus shelter murals , Also consider an internet websi te (i e baitcar.com).
whic h shows videos of real ba it car theft s and the ens uing arre sts, These publicly -viewed videos
are embarrassi ng to the th ieves and can be a deterrent to furth er thefts
•
Change th e bait vehicles so the thieves will not recognize bait cars. Use vehicles that are among
the most frequently stolen but chan ge the colou r and style often.
•
Partner With the auto crime section of the local polic e force
A bait car program can produce successfu l results, For exam ple, the bait car program In B C is cred ited
for reducing auto theft in Greater Vancouver by 10% in 2004 and 11% In 2005 ,3 The program has been
expanded to include recreational products such as snowmobiles, A1Vs seadoos. motorcycles , and boat s
and motors
Auto Theft Prev en tio n Pr ograms
Citizen 's C rime W atc h Volunteer Program
The prem ise of th is program IS to recruit private CItizens as a crime watch volunteers , Once a month two
volunteers team up for 6-hour evening street patrols . Equipped with access to CP IC data on donated
laptops or pa lm pilots, portable computers and radios , the teams patrol high auto theft areas and act as
addit ional eyes and ears for the police. They input licence plate numbers of parked and moving vehicles
If the input matches the plate number of a vehicle listed on a "hol shee t" of stole n autos , the volunteers
keep an eye on the suspect auto and alert the pollee abo ut thei r finding This program has bee n
succ essful in B.C where Citizen's Crime Wat ch volunteers help 10 recover between 1000 and 1400 stolen
vehicl es ,
Limited Hours o n th e Ro ad Pr ogram
A distinc tive decal or other vehicle Identifier that IS placed In the rear window tells police that tt ne vehicle
IS rarely d riven between certain hours such as 1 am and 5 am When pollee spot a vehicle With a deca l on
the road between these specified hours, they stop the vetucte 10 verify the dnver's hcence and
registration
Ttns program is a simple . cost effective proven way to reduc e the fisk of auto theft and an effective
deterrent 10 would-be thieves
3
Bartcar.com
No vember 15, 2007
Page 8 of 18
Best Pr actice Models fo r Combat ing Au to Theft
Veh icle Reco very Tec h no log y
In jurisdictions where the vehicle recovery rate IS low , the insurance industry can help increase the
recovery rate by fundmg the use of vehicle recovery technology by police . These systems allow pohce to
track a stolen vehicle through a cellular signature. Once the vehicle's general vicinity has been identified
through It's proximity to cellular towers , II can be located by specially equipped police cars The most
popular systems are manufactured by La/Jack and Boomerang
These systems result in increased recoveries and occasionally lead police 10commercial crime
operations such as Chop shops.
Recovering Aut o Th eft Claims Co sts
Impleme nt provincial programs that will initiate civil litigation against car thieves involved in the theft of or
posse ssion of stolen vehicles in order to recover all of the associ ated costs including
• vehicle repairs of replacement
•
loss of use
• property damage
• refund victim deducubtes
• all Invesuqanve expenses
•
legal costs
The programs would target adult and young offenders convicted of theft of vetucle or possession of stolen
property, charged but not yet convicted of theft of vehicle or possession of stolen property, and
apprehended but not charged With theft of vehicle or possession of stolen property .
After a judgment is obtained against an auto thief the judgment stays in effect for up to 20 years Those
wrth unpaid debts would be disqualified from obtaining a driver's licence, reqistranon . or Insurance ,
Manitoba Pubhc Insurance (MPI) implemented a similar program in 2001 which has been successful In
generating revenue and has received strong public support The Insurance Corporation of Brmsn
Columbia (ICBC ) has recently implemented a Similar pilot project called Projec t No Free Ride designed to
enhance existing law enforcement and auto theft programs and act as a powerful deterrent against future
auto theft . In addition, ICBC is taking civil action 10 recover more than $2 million in claims costs from the
"top" convrcteo auto thieves ,
Autom ati c licence Plat e Recognition
Automatic licence plate recogn ition (ALPR) is a mass surveillance method that uses optica l character
recognition on images to read the licence plate s on vehicles. As of 2006 systems can scan number plates
at around one per second on cars travelling up to 160 km/hr , They can use existing closed-circuit
television or road-rule enforcement cameras, or ones specifically designed for the task , They are used by
various police forces and as a method of elect ronic toll collection on pay-per-use roads, and momtonnq
traffic activity suc h as red light adherence in an mtersecncn. They are also used at ports, airports.
Olympic srtes. bridge crossings, tunnels, and national secunty sites and for crime scene mapping
After the hcence plate has been identified It can then be cross-referenced agamst a police datab ase The
database is compnsed of stolen vehicles , uninsured vehicles , vehicles with stolen licence plates , vehicles
associated to prohibited or unlicensed drivers and vehicles associate to person of interest.
November 15, 2007
Page 9 0118
Best Practice Mod el s fo r Combating Au to Th eft
Best practice model for use of auto th eft devices
Mechanical Imm obilizers
Mechanicallmmoblhzers Include steering wheel locks , shifter locks and brake pedal locks , Although
these devices can be good visual deterrents , an electronic immobilizer provides much better protection
against auto theft
Vehicle Alarms
Vehicle alarms draw attention to would-be thieves with sirens , beeps and other loud noises Some
systems trigger flashing lights too
False alarms have reduced the public's faith in this type of anti-theft device. However, a quality product
that is professio nally installed or adjusted can offer good protection.
An alarm may deter a break-in , but it can't stop someone from driving off with your vehicle . To do that ,
you need an alarm system that includes an electronic engine immobilizer.
Electronic Immobi lizers
Among all types of ann-theft devices , electronic engine immobilizers protect you best against vehicle
theft. Electronic Immobilizers require a special key or small electronic device to start a vetncie's engine
An electronic immobilizer is a device fitted to a vehicle to prevent it from being stolen Immobilizers work
by isolating two separate circuits that the vehicle requires to run (that is, the starter, igOlllOn , fuel or
engine management systems) This effect is achieved by inserting a relay into each circuit and
controlling the activation of the relays via Intelligent solid state CircUitry
In January 2005. the Department of Transport amended Canada Motor Vehicle Safety Standard
(CMVSS) 114. which IS part of the Motor VehICle Safety Regulations (MVSR) , The purpose of the
amendment is to require that vehicles be equipped WIth anti-theft immobdeaton devices More
specifically , the Department requires that all vehicles havmq a Gross Vehicle Weight Rating (GV'V'JR ) of
4 536 kg or less have an immobilizatton system installed that . at the choce of the manufacturer. meets
one of the following standards '
• Underwriters' l aboratories of Canada CAN/UlC·S338. "Standard For Automobile Theft Deterrent
Equipment and Systems : Electronic Immobilization;" or,
• United Nations Economic Commission for Europe (UNECE) Regulation No. 97, "Uniform
Provisions Concerning Approval of Vehicle Alar m Systems (VAS) and of Motor Vehicles With
Regard to Their Alarm Systems (AS)."
Best Practice Model fo r Use of Electron ic Immo bilizers
Introduce a voluntary electronic vehicle immobilizer program by offering an incentive such as a
rebate which provides a discount off the retail price for installation of an enmobihzer. The
program could target specmc vehicles , communitres or persons Tjus may Involve partnering With
the auto Insurance industry in the member junsdcnon.
A voluntary program is likely to have a high level of public acceptance and take-up as well as
being relatively inexpensive and straightforward to implement.
2. Develop secunty ratings for vehicle manufacturers to raise public awareness and encourage
industry best practce
3. Develop other public awareness and marketing campa igns 10promote electronic rmmobilizers to
achieve high take-up rates.
November 15. 2007
Page 10 of 18
Best Pra ctic e Models for Combating Auto Theft
Best practice model for young recid ivist car theft o ff ender programs
Bac kg rou nd
Australia provides several programs to young offende rs with a history of motor vehicle related
offences Entry criteria is limited to recidivist motor vehicle offenders aged 151020, Participants are
usually referred by the courts or by SOCIal agencies The programs uniquely address two mejor
commuruty challenges - youth unemployment and youth crime (partcutany motor vehicle theft)
The ten week programs are offered within the environmen t of a mechanical workshop, offering young
people hands-on traming in auto mecha rncs. spray painting, body work, detailing, workshop safety ,
driver education, literacy, and communication skills
The programs also offer vocatio nal support
such as work expenence. interviews. jo b placement, and links to employment and further education.
Legal motor vehicle related recreational activities such as go-eart racing are offered along wit h other
positive social and recreational experiences
The programs could be classified as personal development programs as they provide opportunities
for participants to assess their recent past and work with a youth worker 10 make choices to address
their offendmg behaviour and make positive changes In their lives Although most of the courses
offered are not directly aimed at confronting offending behaviour. they encourage participants to use
their interest in motor vehicles in a legal and positive way .
Over a fIVe year period . one program called "Hand Brake Tum " placed 72% of young particpante mto
employment and ecucanonar placements . Independent research has demonstrated that 90% of
these young people were still in placements after 12 months. The research also determined that 80%
of all participants had not re-offended up 10 12 months after completing the program
In Australia. these programs are funded by the federal government and supported by state
governments. the Australian Youth Foundation. law enforcem ent. and NRMA Insurance who serve as
the projects major corporate sponsor. Each project is also supported by regional industries and
businesses
Model Cri teri a
In order to establish successful programs, the follow ing cntenon is essential :
•
Clear. attainable, and measurable objectives
•
Highly driven staff who are committed to working wit h young people
•
Managers who are committed to their staff , young people , and to continuous improvement
•
Regional or local based advisory committees who guide the project and link it to local needs
•
Sponsors and funding bodies
•
Support from SOCial eqenoes to assist With housing , transportation . and other support
services for perncipente
•
Community support
•
Strategically locahng the programs In a location that has a entreat mass of automotive trade
businesses and the potential capacity to absorb participants into automotive related
employment
•
Specific eveluanon methodology
November 15. 2007
Page11of18
Best Pra ctice Models for Combating Au to Theft
Best practice model to ensure secure identification of motor vehicles
VIN Securit y
The metal Vehicle Identification Number (VIN) plate affixed to the vehicle chassis with pop rivets is
the primary source of vehicle identification
1. Manufacturers are encouraged to mark the VIN on all major components of the vehicle to help
identIfy theft recoveries .
2. Encourage motorcycle manufacturers to mark the VIN on the engine as well as the motorcycle
frame .
3. Build a field into jurisdictiona l registration computer systems to capture the part number of
motorcycle engines.
4. Implement a VIN etching program to provide a visual deterrent.
Secure Id entifi cation Labels
Back ground
This section provides educational background for future consideration and/or use,
Sophisticated identification labels with features designed to prevent counterfeiting and recognizable
tampering/removal have been developed and are used successfully overseas . These produ cts
include specialized footprint labels , coded data formats , self-destruct features , and sub-surface data
printing systems , The use of secure identification labels will assist law enforcement agencies in
identifying stolen vehicles and components to promote successful prosecutions
Footprint labels are resistant to heat, engine , transmission, and coolant fluids and normal
envir onmental exposures , Special dyes are mixed into the adhesive which react with the painted
substrates This leaves a 'footprint' that is visible under ultra-violet light if the label is removed . The
labels Will self-destruct if any attempt is made to remove them ,
Labels may incorporate coded data such as hidden logos or holograms that require special retro ­
reflective viewing conditions for verification .
Sophisticated laser based sub-surface imprinting techniques add counterfeit protection and "life-of­
vehicle'durability . Access 10 the data face is impossible without destroying the label.
In order to be successful , secure identification labels must reflect the latest advances in technology,
law enforcement agencies must be trained in identifying and verifying vehicles and components that
may be stolen , and they must be equipped with the appropriate verification and detection equipment.
Id entification of Vehicle Components
To be effective, identification of vehicles components must make the task of re-identifying a vehicle
too much trouble and too risky for professional thieves . To do this the identification methods must be
overt so that everyone knows it is there, it must be very difficult to tamper with or remove , it must be
easy and relatively inexpensive to apply . and it must be easily identifiable by police and registration
author ity personnel.
Microdot technology can be used successfully as a theft deterrent. It meets all of the above criteria
and thieves will find it almost impossible to defeat.
November 15. 2007
Page 12 of 18
Best Pract ice Models for Co mbating Auto Theft
Mic rod ot Tech no lo gy
The application of microdots is one of the most advanced identification system available for protectmg
your vehicle from theft. Once applied. a vehicle then has its own "DNA", making II traceabl e by law
enforcement back to the lawful owner and undesirable for a thief to steal
The information coded on the dot is either the original manufacturers VIN or a unique PIN number
which is linked to the VIN of the vehicle through national databases only accessible by law
enforcement. The finding of any microdot allows police to prove the true ownership of any asset and
in doing so, identIfy stolen parts and make verifiable prosecutions.
Microdots are about the size of a grain of sand. each coded with lines of text applied using a
sophisticated laser process
The dots are applied to assets using an adhes ive specially developed for microdots which contam s
an ultra-violet trace that fluoresces under UV black lights typically used by law enforcement and
forens ic personnel.
Once applied , microdots are resistant to most acids. solvents , road salts, heal. and significant
damage would need to be done to an asset to remove them . The dots are read using a simple
magnifying reader commonly available from most electronic or hardware stores
Mic rodots o n Vehi cl es
Each vehicle is marked With thousands of uniquely coded microdots which are simply sprayed on the
chassis , compliance plates. and high theft engine components Microdots may also be applied to
other parts of the vehicle including alloy wheels , DVD's. and stereo equipment.
Window and engine warning decals are also fitted to every marked vehicle to aid in theft deterr ence
and recovery ,
As it is near impossible to remove the thousands of microdo ts applied to a vehicle . professional
thieves run a very high chance of being either caught with stolen items or can be identified later as
the distributor of stolen parts through the finding of just one microdot.
Microdots may be applied aftermarket
November 15, 200 7
Page 13 or 16
Best Practice Models for Combating Auto Th eft
Intensive Marking to Prevent Vehi cle Theft
Intensive Marking is an aftermarket identification process available for the protectio n of a vehicle against
theft and is used in the identification and tracing of its parts following a theft ,
The process consists of applying a unique code by means of a sandblasting and electric engraver to
glass, lights . mag wheels , engine parts and other components on a vehicle , In order to add to its deterrent
value, distinctive decals should be displayed with a unique symbol well recognized by the police and
organized criminal groups involved in vehicle thefts .
The process should be esthetic , visible to the naked eye (Minimum of Y."(6mm) high and 3/16"(5mm» and
should not require any specialized equipment to read or deciphe r. It acts as a pre-inspection on vehicles
being insured or registered and deters fraudsters from insuring paper cars , cloned vehicles , previousl y
damaged and salvaged vehicles and also uncovers odometer rollbacks.
Applyin g the Intensive Marking
The Intensive Marking identification code should be engraved on automob iles, motorcycles , small and
large trucks, motor homes , heavy equipment , boats and recreational vehicles . It is recommended that a
minimum of 50 parts be marked on automobiles and 125 parts on large trucks , heavy equipment and
boats
A sandblasting technique should be used to apply the identification code on all glass and plastics such as
windows, sunroofs and lights. It should also be used to mark body panels on large vehicles and mag
wheels on automobiles and trucks.
An electric engraver should be used for parts inside the engine compartment and in difficultlocalions
requiring smaller lettering
The code should be apposed 10 the vehicle using a sandblaster method and electric engraver , that is
virtually impossible to remove , modify or obliterate therefore making the vehicles marked less attractive to
professional thieves and distributor of stolen parts,
A quality control system should be ma intained in order to ensure the quality and integnty of all markings,
Unique Id entification Code
An Alphanumeric Identification Code should be used. com posed of letters and a sequentia l number that
cannot be deciphered , created or recreated to match the vehicle on which it is applied , The code should
be entered into a database and cross-referenced to the Vehicle Identification Number (VIN) that is
available to the police and registration autho rities 24f7. All pre-owned marked vehicle VINs should be
validated through a recognized Vehicle Identification Number data provider to establish the present or
past status of the vehicle ,
The code when viewed by police and other authorities should allow them to quickly determine the locat ion
where the vehicle was originally marked, It assists in tracing the origin and true identity of a suspected
stolen vehicle thus becoming an indispensable investigational aid ,
November 15. 2007
Page 14 01 18
Best Practi ce Mod els for C ombatin~ Au to Th eft
Bes t pra ctice model to create high public awareness
The follow ing are some recent effective examples of program s created to create high publ ic
awareness that could be considered for all j urisdictions
1. Implement a junsoicncnal limited hours on the road program such as B.C.'s "Combat Auto
Theft (CAT) program , In this programs, vehicle owners register their vehicles which them
allows law enforcement officers to stop and check these vehicles between the hours of 1:00
am and 5:00 am when a large percentage of veh icles are stolen . Thieves are less likely to
steat a vehicle with a CAT sticker for fear of being pulled over by a police office r
2
3
Create vanous advertising campaq ns to educate the public an how to protect their vehicles
from auto theft An example IS the "Layered Approach to Protection": The four layers of
protect ion are.
•
Cammon sense - remove keys from the igOlllon, lock doors and windows , and park
in well-ht areas ,
•
Warn ing devices - audible alarms , steering whee llbrake pedal locks. whee llt ire locks,
theft deterrent decals . identificat ion markers in or an vehicles, Window etching
•
Immobilizing devices - smart keys , fuse cut-offs , kill switches, and starter , fuel , or
ignition diseblers .
•
Tracking devices - devices that use Global Positioning Systems (GPS)
Develop advertrsmq campaign directed at the importance of securing vehicle keys Never
leave keys inSide a vehicle and know the location of your keys at all limes Vehicles are often
stolen from self-serve fuel stations while owners are paying the attenda nt or when vehicles
are left to warm up outside
4. Create an awareness strategy to educate teens about the dangers of auto theft. This could
be a powerfu l educatcnat tool for use by teachers , school liaison officers, insurance brokers,
and public safety advocates .
For examp le, B C. is producing a raw and edgy auto theft prevention video that will be shown
to high school students across the province to inform them about the dangers and traged ies
of auto theft with the ultimate goal of saving lives and reducing auto cnme. The auto theft
video will provide a graphic deterrent to auto theft and will focus on the stones of offenders
and victims with an emphasis on the loves that have been stolen as a result of auto theft
The video will be fast paced and designed to hold the attention of teenage viewers
5, Develop partnerships with property owners (malls and parking lots) and business
improvement assoctanons. Such things as parking lot stgnage, volunteer bicycle patrols, and
advertismq campaq ns would help deter auto thieves.
No\l'OO'Cef 15. 2007
Page 15 of 18
Best Practice Mod els for Combati ng Auto Th eft
Best practice model for veh icle inspection programs
Most jurisd ictions have a passenger vehicle inspection program , either annual, point-of-sale , or upon
admittance to the jurisdiction , It is important that private vehicle inspections verify and validate the
identity of vehicles presented for inspection, VIN discrepancies, alterations and tamper ing are not bemq
detected as evidenced by a number of police investigations and subseque nt seizures of stolen vehicles ,
Continuous improvement of system operation and vehicle inspection standards will improve the dete ction
of cloned stolen vehicles and other types of masking vehicle theft.
•
Ensure jurisdictional inspection tacihties sight two matching VIN's
•
Provide regular training on the detection of "bad" VIN's or CMVSS labels
•
Provide an educational package with visual aids as an ongoing skills development plan
•
Have a strong inspection facility audit program which includes regularly scheduled audits
Novembe r 15. 2007
Page 16 of 18
Best Pract ice Mod els for Combating. Auto Th eft
Best practice model to safeguard against identity theft
Jurisdictions are encouraged to provide educational material to clients regarding identity theft as this is
strongly tied to auto theft.
What Is Id ent ity Th eft ?
Identrty theft occurs when someone gains access to another person's personal mtormatcn . such as the
DL number, SOCial security number, bank or credit card account numbers, and uses them to commit fraud
or theft. An impostor can use your identity to open fraudulent credit accounts, secure loans for cars and
housmq, or steal money from your bank accounts,
Identity Theft Invol ving Vehi cles
Identity theft can include theft of driver licenses, birth certificates. or banking information to obtain false
tdenufrcancn Identity thieves can use any of these documents to secure a new identity and purchase
vet ucles and insurance in the name of the identity theft VIctim , Vehicles and Insurance are often
purchased and sold USing false identities and false credit cards.
In most of the cases involving vehicles. vehicles are purchased at an auto dealership with a credit card
The vehicles are not high in value and therefore the purchase by a credit card does not reee susccicn at
the dealership. Depending on the nature of the financial transaction (cash , cheque or credit) , either the Id
theft VIctim, motor dealer, or the credrt card company can become a victim of identity theft
Impa cts to Vehi cle Own ers
•
•
•
•
•
•
•
•
Vehicles improperly registered in identity theft victim's names
Insurance claims filed in identity theft victim's names
The victim's policy hrstory can be affected affecting insurance rates
Debt for Insurance poncies taken out rn a false name
Credit rallng affected by debts incorrectly in their name
Couecnon agencies trying to collect debt from a victim of identrty theft
Fraudulent driver licence activity by the thief resultrng in motor vehicle tickets , or uSing a onver
license to as oenutcanon to purchase other services
l oss of the value of a vehicle (motor dealers or credit card companies)
Best Practi ces to Protect Vehi cle Owners
•
•
•
Lmk reqrstranon. licensing, and insurance databases with drivers' hcence databases in order to
inform all agencies that a driver's licence has been stolen
Develop and implement a standard identity theft statement to be completed by the victim
Develop and distribute used auto bUyIng gu ides
Top Ten General Best Practic es to Avoid Ide nti ty Theft
1
2
3,
4
5
6
7
8
9
10
Shred all financial documents before throwing them out.
Purchase a locking mailbox or route mail to a post office box.
Distrust e-mail links - instead, type addresses directly into the address box .
Protect your computer with a firewall and anti-virus software
Don't disclose social security numbers or other confidentia l information
Download software WIth caution - avoid downloads from questionable web sites
Create unique passwords , commrt them to memory
Don't open e-mail attachments from unknown sources
Don't put personal information such as your driver 's licence number on cheques
Purchase identity theft protection
November 15, 2007
Page 17 of 18
Bes t Pract ice Mod els for Comb ati ng Auto Th eft
5
References
National Motor Vehicle Theft Reduction Councll - Strategic Plan 2005 (Australia)
National Motor Vehicle Theft Reduction Council- Best Practice Model and Business Plan for a Young
Recidivist Car Theft Offender Program - April 2002 (Australia)
Florida Ann-Car Theft Committee (U S A) (from website August 2006)
Stansncs Canada (Canada)
Provincial Investigation Team Newsletters - Various dates - Insurance Corporation of British Columbia
(Canada)
Stolen and Wrecked Vehicles Monitoring Program - CCMTA June 1994 (Canada)
The Insurance Bureau of Canada - Report on Auto Theft (Canada) (from website August 2006)
National Motor Vehicle Theft Reduction Conference 2000 - Conference Papers (Australia)
November 15. 2007
Page 18 of 18