What Your Dealership Needs to Know About Modern Vehicle Theft

Vehicle technology has rapidly advanced — and so have criminals’ methods. Thieves now mix old-school tactics with modern workarounds, targeting everything from unattended keys to vulnerabilities in connected-vehicle features and dealership workflows. For dealerships, a single stolen key or vehicle can mean significant financial loss, disruptions to sales or service operations, and hours spent on police reports and recovery efforts.

Doing your part to reduce theft means familiarizing yourself with thieves’ tactics, protecting your dealership’s inventory, and educating your customers on how to protect their property.

Common Vehicle Theft Tactics  

Victims: Dealerships, private owners

Theft is often as simple as the thief accessing the key. Criminals take advantage of simple lapses, such as leaving keys in vehicles or unsecured in the dealership. 

In what’s called the key-swapping scam, potential vehicle buyers will visit a dealership asking to test drive a vehicle. After the salesperson hands over the keys, the supposed buyer covertly pockets them and returns a counterfeit pair to the salesperson. The thief later returns to steal the vehicle using the stolen key.

Victims: Dealerships, private owners

Keyless entry technology makes it easy for thieves to steal vehicles via relay theft, using cheap relay devices they can easily purchase online. Here's how it works:

 

Victims: Dealerships

Some criminals will obtain vehicles through synthetic fraud, where they combine real data from multiple people to create a new identity that seems legitimate. After purchasing a vehicle with a false identity, they can quickly sell the vehicle for cash.

Synthetic fraud warning signs include:

• Credit profile discrepancies 
• Limited credit history
• Inconsistent information, such as mismatched names, addresses, or Social Security numbers
• Submitting multiple applications to different dealerships in a short time span
• Rushing the deal without negotiation

Victims: Dealerships, private owners

Also called vehicle identification number (VIN) cloning, VIN switching scams involve altering a vehicle’s original VIN to conceal the fact that it’s stolen.

These operations are often highly organized. In a recent case in California, authorities busted a nationwide theft ring that stole 19 vehicles, altered their VINs, re-registered them through the Alaska DMV, and sold them through a Bay Area business. The vehicles' total value was over $800,000, underscoring the financial impact of the scam.

While this list describes the methods you’ll hear most about in the news, it’s by no means comprehensive. Stay alert for new tactics as they crop up.

 

Preventing Crime on Your Lot

Once you’re familiar with how thieves operate, be proactive about protecting your business and your inventory by following a few critical guidelines.

Deterring theft begins with basic security measures, such as lighting, fencing and gates, surveillance systems, guards, and alarm systems. While these steps alone won’t thwart professional thieves, they’ll make their jobs more difficult.

Since using the keys is one of the easiest ways for thieves to steal a vehicle, store keys in a locked room, preferably away from outside windows and doors to deter relay theft. For added security, keep keys inside an electronic key control system with locking steel drawers and the capability for text alerts and audible alarms in the event of a potential security breach.

Using a system that requires you to attach keys to a tag with a metal ring will also make it harder for thieves to swap the original key for a counterfeit during a test drive.

 

Look out for potential red flags in a sales transaction. If someone is acting nervous or something doesn’t seem right, go with your gut and take the time to double check the buyer’s information. When assessing trade-ins or auction vehicles, carefully inspect the VIN for signs of tampering and verify that the seller’s name and the VIN are consistent across all vehicle documents.

 

Seek guidance from third parties such as your security technology partners, local law enforcement, and insurance company. You’ll be able to stay up to date on the latest theft tactics and get tips for protecting your business.

Thieves are smart, but that doesn’t mean you can’t outsmart them. By staying vigilant and taking precautions, you can make your dealership a less attractive target.

Educating Customers 

Educating your customers on how to protect their vehicles builds trust and shows that you’re willing to serve them even after they drive their vehicle off the lot. In addition, letting them know that you’ve implemented safeguards within your own dealership to protect vehicles in sales and service makes them more likely to feel comfortable bringing their vehicle to your service drive.

Sharing your knowledge and expertise about preventing theft could be as simple as handing the customer a flyer with helpful tips along with their paperwork when they purchase a vehicle or sending an email with a link to a video. These tips could include:

• Park your vehicle inside a garage when possible. 
• Always lock your vehicle and never leave keys inside, no matter how safe your neighborhood seems.
• Avoid leaving keys outside your home (e.g., under a doormat) or just inside the entryway.
• Store key fobs inside a Faraday pouch (a bag designed to block various types of signals, preventing hacking).
• Use locks on your steering wheel and/or wheels. 
• Don’t leave personal items or valuables inside the vehicle. If it’s unavoidable, lock the items in the trunk. 
• Don’t keep documents with private information inside your vehicle. 

Taking this extra step to inform your customers doesn’t require a lot of expense or effort, but it’ll increase customer loyalty.

 

Thieves' methods will continue to adapt, but you can too. By taking steps to secure your vehicles and educating customers on how to do the same, you can protect your inventory and reputation.