We have been getting a few reports of scams involving vehicles so please take a moment to review the following information and stay safe!
Please beware of buying vehicles on Craigslist or any other online sites, especially when payment is requested before delivery of the vehicle or item.
In one common scenario; the victim finds a vehicle that they are interested in by viewing postings, the victim and suspect start up a conversation by emailing each other and agreeing on a final price, the suspect then tells the victim to pay for the vehicle by purchasing a “Paypal” or another brand of gift card(s) and to send or email a photo of the gift card serial number with the security code exposed that the victim was instructed to scratch off. Once the photos are sent and money retrieved from the gift cards from information found in the photos, there may be discussion delivery of the vehicle but delivery never happens and the victim is unable to get a hold of the suspect after that.
This is a 2011 FBI post but the information is still relevant:
https://www.fbi.gov/news/stories/2011/august/car_081511
Other informations:
The “Price Too Good to Be True” scam:
In this scam, a prospective buyer sees an attractive-looking car (often a classic or exotic car) for a price well below market value. When the buyer contacts the seller, he or she is notified that the seller and the car is outside of the country and they will arrange for shipment of the car upon receipt of payment, most often via wire transfer (such as Western Union) or bank-to-bank transfer (for very large amounts). When the money is transferred and collected, the “seller” breaks contact, refuses to ship and the buyer is out the money.
The “Over Payment” scam:
A legitimate seller posts a car for sale. He or she is then contacted by a prospective “buyer” (really a scammer) who offers to send a cashier’s check immediately plus overly generous additional funds to cover shipment of the car overseas. When the (fraudulent) check arrives, the seller is instructed to deposit it and wire any overage to the “shipper” the suspect has chosen. This is required before the (fraudulent) check actually has a chance for the victim’s bank to clear the check and deposit funds into the victims account. When this is done and the wire transfer or cash picked up, the “buyer” then breaks contact and the seller is left to pay for both the fraudulent check and any the missing funds.
The “Escrow” scams
Many consumers are rightfully wary of sending large amounts of money to someone they’ve never met. Scammers frequently recommend the use of fake “escrow” services that will hold funds involved in the transaction until both parties are satisfied that the transaction has been completed. In a typical scam, a legitimate buyer will be approached by a scammer selling a car (again, often an exotic or classic car priced, but usually priced well below market value). The scam seller will offer to ship the car and that there is no risk of fraud due to the “escrow” service (purportedly eBay, PayPal, or another service). Once the money is transferred, contact is broken (or sometimes additional funds are requested to cover “unforeseen” events). In any case, the legitimate buyer never receives a car and loses their money. Be sure to research any suggested “escrow” services before conducting such transactions.
Tips on how to avoid car-buying scams
- NEVER wire money or use a bank-to-bank transfer in a transaction.
- ALWAYS try to deal locally when buying or selling an automobile or any other high-value merchandise.
- DO NOT sell or buy a car from someone who is unable or unwilling to meet you face to face. Be sure to choose a public, semi busy and safe place to meet.
- NEVER buy a car that you have not seen in real life and had inspected by a professional. A vehicle history report may also be a good idea although scammers have been known to use fake vehicle identification numbers to defeat this countermeasure.
- WAIT until a check (personal, cashier’s, certified, or otherwise) has cleared the bank to transfer title or the car itself. Funds being made available by a bank DOES NOT mean the check legitimate. Clearing a check can take days or weeks depending on the financial institutions involved, always check with your banking institution about their check clearing procedures if you are unsure.
- NEVER trust a seller or buyer who says that the transaction is GUARANTEED by eBay, Craigslist, PayPal, or any other online marketplace. These sites explicitly DO NOT guarantee that people using their services are legitimate!
- BEWARE sellers or buyers who want to conclude a transaction as quickly as possible. Scammers want to get your money before you have time to think or have a professional examine the deal.
- CALL the buyer or seller to establish phone contact. If the buyer or seller seems to neglect details agreed to via e-mail or is unable to answer questions about their location or the location of the automobile in question, it is likely to be a scam.
- ALWAYS trust your gut. If a deal feels “fishy” or sounds too good to be true, it probably is. Plenty of people use online classified ads to buy and sell cars every day. The vast majority of these transactions are legitimate and go smoothly. Losing out on a “great” deal in order to work with someone you trust could save you big in avoiding a possible scam.