The car theft rate in Canada has risen from a slow-burning issue to an outright crisis over the past two years. The number of cars stolen in Ontario, Quebec, Alberta and Atlantic Canada nearly doubled by 2022. What is the total financial loss per year? Losses of a billion dollars. Honda CR-V owners have suffered a particularly cruel fate. Their model has the unfortunate distinction of being America’s most stolen car.
This stealing spree cannot be attributed to Canadians who leave their car doors unlocked overnight, nor can we blame the shortage of cars caused by the epidemic. Michael Rothe is the president and CEO at the Canadian Finance and Leasing Association. He says that organized crime groups are responsible for a majority of these thefts. They use their profits to fund illegal activities such as drug and weapon trafficking and people smuggling. Rothe says that Canada has become known for being a country of “donors” because we are so easy to deal with. Rothe describes how the crisis has reached its present crescendo, and what Canadians can do to avoid being unwitting victims.
Your organization published a report earlier this year that stated that a vehicle is stolen in Canada every six minutes. The auto theft epidemic was bad from the beginning, and it has only worsened. What happened?
We’re experiencing this phenomenon due to several factors. Early in the 2000s, auto manufacturers equipped their cars with anti-theft systems, while the government mandated engine immobilizers. The police took car thefts very seriously. We saw an abrupt decline in car thefts because a number of provinces set up auto-theft units. After that, the auto-theft teams were disbanded. Everyone was satisfied with their accomplishments. The criminals saw an opportunity, and the theft rate started to rise.
In the midst of this pandemic there was also a shortage in the automotive manufacturing sector. At the same time fewer people used public transport. The demand for cars increased. Criminals also stole catalytic convertors, which contain high-value metals. Since 2015, the Greater Toronto Area has seen an increase of 300 percent in car thefts. Canada became a low-risk, high-reward environment for organized crime, especially compared with the United States.
Is there another reason why it is so easy to steal an automobile in Canada? Does it only come down to a lack of enforcement in Canada?
It’s a question of enforcement, I think. The U.S. has been much more engaged on this issue since I started working on it. Homeland Security is more engaged than Canada Border Services Agency. Our borders are therefore more porous. Containers with stolen cars have been seen heading to Africa, Asia and Eastern Europe. On a per capita comparison, our car theft rates are similar to those in the U.S. When you compare certain car types in Canada, the manufacturers reported that losses were 10 times greater than those of U.S.
These fraudsters then sell the cars to other countries in order to fund illegal activities like purchasing guns. What kind of things?
Absolutely. I worked personally on a project targeting Hells Angels members who were employed in Ontario’s automotive industry. The Hells Angels were purchasing dealerships to use them as a means of laundering money and facilitating other crimes.
Are there any patterns to the way these groups work? Although I understand that the processes are probably different each time,…
Usually, organized crime is not involved in ancillary crimes such as joy rides and smash-and grabs. These groups are often involved in the re-VINing, which is the process of changing the vehicle identification numbers and selling the car or its parts. Sometimes they choose nicer neighborhoods and target high-value cars. They steal the vehicle again after it is replaced by the owner. Multiple thefts have been reported from the same person. According to what I have seen, it is not the mafia, Hells Angels and other groups that steal. The mafia hires lower level criminals to steal.
What other sights are you able to see?
The headlines are full of carjackings. They’re scary and violent, and they try to steal your vehicle while you’re inside. There are also the usual crimes of chance, such as people who leave their cars running unattended. Uber Eats and Uber drivers are included in this. The driver leaves the vehicle to drop a quick package, and it disappears. It still amazes me how many people do it.
The computerization of everything has allowed for some more enterprising thieves to bypass anti-theft measures. A newer trend is to target cars that have push-button start. Criminals can sit in your driveway, intercepting the radio signal of the fob and programming their own key. They then steal your car. This is called a relay attack, and can occur in seconds.
In an attempt to make cars safer, we’ve accidentally increased their theft potential with all the digital advances. Oops.
Yeah. There’s never a good time to take two steps forward and one back. We’re all working together on this. I am the representative of financing companies. But we also work with law enforcement, manufacturing and government at every level. This issue is not going to be solved by a silver bullet.
Also, there should be an effort to educate the public. Canadians can do little to stop organized crime but can take steps to avoid leaving their CRV idling on the driveway.
You can take many steps to reduce your chances of becoming a target. Do not leave your vehicle unattended or unlocked. Use your garage if you have one. It’s funny how I think of the old saying: You don’t need an impregnable wall, but just one that is higher than your neighbor.
Canadians must also pay attention to the vehicles that they drive. Your car is on the list of top 10 cars that are most stolen? You should take extra precautions to safeguard yourself if your car is on the list. Insurance companies are now charging higher rates for high-theft cars whose owners don’t take steps to protect them.
What are some effective ways to prevent theft?
A Faraday Bag is a great tip for anyone who owns a vehicle that uses a push start. Amazon sells them for around $20 and they block all wireless signals entering your vehicle or leaving it, preventing hacking. It’s possible to attach a wooden club to your steering wheel. However, it doesn’t work as well as people believe. Often, thieves simply saw off the club.
If you want to go the extra mile, then it is possible to pay thousands of dollar for a secondary ignition in your vehicle. This will allow your car not only be started with your key but also by your breath or heart rate. I have also talked to a couple of companies who are working on biometric ignition systems that can be linked with your heart rate or respiration. The mechanism will detect a change in heart rate and shut down the car immediately or prevent it from starting after the shutdown. You have a variety of choices, regardless if you drive a Honda Civic that’s 20 years old or a powerful, expensive car.
What is the institution’s plan of action for the future?
Ontario is one example where a commitment of $52 million was made to bring back both the specialized teams and special prosecutors who would take responsibility for this issue. They are integrated with policing units, so they don’t just work in isolation.
Recently, we’ve heard a few high-profile reports about the busting of police ring in Windsor and Toronto. In Hamilton in spring this year. Recently, I attended a Peel Region summit where the 10 GTA chiefs of police were present and committed to investigating this matter. They made several high-level arrests in a few months. We’ve already seen an improvement.
It often takes an emergency for people to take action. Are you of the opinion that auto theft is not taken as seriously by people as other crimes, because they don’t see it as a financial or property loss. People think that a car is something easily replaceable, and not, “I had my vehicle stolen, now I cannot go to work, or live my normal life.”
This is a major inconvenience, even if you don’t have to report the crime. In some cases, if your car is taken, it could be weeks, or even months, before you can get a replacement, especially if the vehicle has a lot of value. They don’t believe it could ever happen to their car; they assume that this is something that only happens to others’ cars. If it happens, people say, “Well, I’ve got insurance.” Yes, it will affect your insurance premiums. Canada, as a donor nation will also have much higher premiums for everyone. These losses must be covered.
I have dealt with organized crime most of my professional life. It’s insidious. I think that people don’t really realize it. All of these social ills, including money laundering, drugs and guns, are symptoms of organized crime. How do these criminal groups get their large sums of money?
Cars.
Yes. We’re in many respects a safe country. Freedom is not free. The car theft issue will help to solve many other problems.
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