Auto Theft: What the feds’ action plan says

With Canadian auto insurers saying auto theft in 2023 cost the industry $1.5 billion in claims costs, Canada has released its National Action Plan on Combatting Auto Theft earlier than anticipated.

At the National Summit on Combatting Auto Theft, which took place February in Ottawa, the federal government initially announced it would be releasing its action plan in Winter 2024.

But with the number of auto theft-related insurance claims across Canada increasing 56% since 2018 – from 31,915 in 2018 to 49,679 in 2023, per Insurance Bureau of Canada numbers — the federal government has instead delivered its detailed action plan on May 20.

“Many of the property and casualty insurance industry’s public policy solutions are captured in the comprehensive and informed plan,” IBC CEO Celyeste Power commented Monday, the day the feds released the plan.

“We must now focus on swift implementation. As IBC’s latest industry numbers reveal, the auto theft crisis is worsening, with the cost of insurance claims for replacing stolen vehicles in Canada skyrocketing to a record-breaking $1.5 billion in 2023, a 254% increase since 2018.

“Auto theft is disrupting the lives of Canadians and causing them concern and trauma. It’s also placing pressure on their insurance premiums – as auto theft continues to increase, so do the associated costs. Auto theft is not a victimless crime.”

The federal government’s action plan outlines more than 17 detailed recommendations in three key areas: 1) Intelligence or Information Sharing; 2) Intervention, and 3) Legislation, Regulations and Governance.

Action Plan Highlights

Intelligence or Information-Sharing

Under the lead of the Canada Border Services Agency (CBSA), the government proposes to “enhance customs information and intelligence sharing to support municipal and provincial police forces.” Also, it will “engage all partners in the export trade, such as port authorities, shipping lines and rail operators, to develop actionable intelligence on stolen vehicles.”

The Royal Canadian Mounted Police (RCMP) plans to “deliver Canadian Police College courses on auto theft investigative techniques, to municipal, provincial and federal levels of law enforcement.”

Insurance participants at the national summit in February indicated a dedicated national office for auto theft was a discussion point.

Along these lines, the federal government’s action plan includes establishing “a National Intergovernmental Working Group on Auto Theft, led by Public Safety Canada, with federal, provincial, and territorial governments to coordinate actions, monitor progress, and explore new initiatives that may be undertaken at all levels for a multi-faceted approach to combatting auto theft.”

On the financial side, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) will take measures leading to “…useful financial intelligence to address money laundering and proceeds of crime linked to auto-theft.”

Meanwhile, Transport Canada will help provinces and territories take steps to prevent ‘re-vinning,’ or other uses of fraudulent vehicle registrations to re-sell stolen vehicles. “This could include investments to enable comprehensive data sharing across jurisdictions through the existing Interprovincial Record Exchange (IRE),” the action plan states.

In other news: Do clients driving rental cars know what’s covered?

Intervention

The action plan calls for “enhance[d] collaboration with port authorities, rail and shipping partners to expand export cargo container examinations, including the deployment of scanning and detection technology in new locations (e.g., rail yards).”

Advanced data analytics and artificial intelligence (AI) will be used to better target containers with suspected stolen vehicles, the plan states.

And $28 million will be invested in part to hire “new frontline Border Service Officers and deploying them to ports, railyards and intermodal hubs to expand examination capacity in response to intelligence developed by the CBSA and law enforcement.”

The action plan recognizes that organized crime is relying on youth to steal cars. To this end, the government says it will do two things:

“Through the National Crime Prevention Strategy, continue investing $51 million per year in community-based prevention initiatives for youth-at-risk for future involvement in the criminal justice system, including to prevent at-risk youth from joining gangs.”
Also, the government says it will offer “new project funding under the Youth Gang Prevention Fund for community-based initiatives that prevent at-risk youth form joining gangs and divert them from future involvement in criminal and anti-social activities, such as youth delinquency, auto theft, substance use and gun violence.”

Legislation, regulations, and governance

Per the action plan, Canada’s Department of Justice will look to create “new criminal offences related to auto theft involving the use of violence or links to organized crime.” It will also make “possession or distribution of an electronic or digital device for the purposes of committing auto theft” illegal.

New regulations would target criminal organizations that exploit youth to carry out auto theft. For example, “a new aggravating factor at sentencing” would be “if an offender involved a young person in committing an offence under the Criminal Code.”

The feds also propose to “amend the Radiocommunication Act to regulate the sale, distribution, and importation of radio devices used for auto theft.”

Feature image courtesy of iStock.com/Rallef