Beware of Fake Auto Dealers When Buying Vehicles Online
Law enforcement agencies across the country are warning consumers about a growing fraud scheme targeting online car buyers. Scammers are posing as legitimate auto dealers, using spoofed online ads, cloned websites, and stolen photos to lure buyers into sending money for vehicles that don’t exist. These fake dealers often advertise prices that seem too good to be true and pressure buyers to act quickly. In many cases, victims are asked to wire funds for a vehicle sight unseen, only to discover later that the seller and the car were never real.
Members considering an online vehicle purchase should watch for these common red flags:
- Prices that seem unusually low
- Limited, poor-quality, or stock photos
- Mismatched details, mistakes, or frequent typos in listings
- Refusal to allow an in-person inspection of the vehicle
- Insistence on delivery only, paired with demands for wire transfer payment
- High-pressure sales tactics, such as claims that another buyer is “ready to buy”
- Dealers who refuse to provide a physical address
- Cloned or spoofed websites with odd or incomplete URLs, missing pages, or generic content
To help reduce the risk of fraud, members are encouraged to take the following precautions before completing an online vehicle purchase:
- Always physically inspect the vehicle before transferring payment. If an in-person inspection is not possible, consider hiring a trusted third party to inspect the vehicle on your behalf.
- Research the seller or dealer thoroughly. Confirm the dealer exists and ensure you are communicating directly with the legitimate business. Search the phone number listed in the ad or on the website to check for complaints or reports of fraud.
- Verify the dealer’s physical address. Use Google Maps to confirm the location and determine whether the address matches a legitimate auto dealership or lot.
- Avoid payment methods that do not allow for recourse. Do not send funds via wire transfer, cryptocurrency, or gift cards. When appropriate, consider using a reputable escrow service so funds are not released until the vehicle is delivered.
- Request the Vehicle Identification Number (VIN). Use an independent verification service, such as Carfax or AutoCheck, to obtain a vehicle history report and confirm the vehicle’s legitimacy.
To learn more about recent scams, please visit ftc.gov.