In recent years, there has been a rise of what's called VIN cloning, which is the fraudulent practice of using a legally registered car's VIN to hide the identity of a stolen vehicle.   Thieves have become increasingly skilled at this by using advanced technology to alter VINs, making it nearly impossible for the average buyer to detect a cloned VIN.   CARFAX reported that Canada has seen a 63% increase in VIN cloning investigations from 2019 to 2023--an issue that could have unwitting buyers face lower resale value, expensive repairs and even legal problems.    What you need to keep in mind though is that it's not illegal if you unknowingly buy or possess stolen property, but ignoring suspicious situations or claiming ignorance won’t protect you.   However, if you do unknowingly buy a stolen car with a fake VIN, and police find out, you might end up facing fraud charges and have your car confiscated with no compensation. In most cases, insurance companies will also refuse to cover stolen or re-vinned cars.  While no single indicator can pinpoint a criminal seller, the more red flags there are, the more careful you should be as a buyer. Make sure all the paperwork matches up and don’t be afraid to walk away when you spot inconsistent details or sellers who avoid providing documentation.   Being cautious and aware of warnings signs can help you avoid the risk of ending up with a stolen vehicle.  Read next: What you need to know about insurance for a new versus used car