Victims lose thousands to scammers posing as dealers online
7/12/2010
Washington, DC – The Better Business Bureau (BBB) is warning car shoppers to beware of web sites offering too-good-to-be-true deals on repossessed cars. The BBB has heard from people across the country who thought they were buying from a reputable dealer online but were actually sending money to scammers posing as legitimate, already-established community dealerships.
“Because scammers essentially steal the identity and good name of real auto dealers, car shoppers will think that they’re buying a car from a reputable business,” said Edward Johnson, President and CEO of the Better Business Bureaus. “The truth is, they’re being sold a bill of goods by a coordinated, agile and, in all likelihood, overseas outfit of scammers.”
The fraudulent websites claim to sell repossessed cars at prices well below market. Buyers are instructed to wire a deposit — as much as $5,000 — to an individual rather than the company, which, according to the phony website, “helps us avoid taxes legally.” The balance is to be paid upon delivery at the consumer’s address within five days.
After paying the deposit, victims called the real dealership to arrange delivery of their car. Some customers even showed up at the lot to pick up the cars they had “bought” on the bogus site.
The web sites are often taken down after a few days only to crop up shortly thereafter under a different URL address and under the auspices of another legitimate dealer.
The BBB recommends that car shoppers look for the following red flags when shopping for a car online:
- The prices are too good to be true.
- The dealer only communicates through chat or e-mail—never by phone.
- The dealer only accepts payment by money wire transfer.
- The dealer discourages visiting the show room.
The BBB also recommends that you check with your local auto dealer association to obtain a point of contact at the given dealership and authenticate the offer. In addition, you can check with the BBB to obtain a list of BBB accredited dealers.
If you have been the victim of a fraudulent auto dealer online, notify your BBB at www.dc-easternpa.bbb.org and the Internet Crime Center at www.ic3.gov to file a complaint.