A VIN can be used to commit many types of fraud, ranging from insurance fraud to tax evasion. In very simple terms, a thief can use your VIN to register a stolen car in their name and sell it as if it were theirs. They might also buy auto parts with a stolen credit card and re-sell them at a discounted price. The most common risk is unknowingly buying a vehicle that has been stolen or damaged by water, fire. If an unscrupulous dealer sees that the buyer knows something about cars, they may ask for your VIN, and you will likely buy the car without knowing the true nature of the seller's business.