Better Business Bureau serving Southern Colorado June 12, 2014 – If you are cruising online vehicle ads looking for a new ride, the Better Business Bureau (BBB) warns consumers to be alert. Criminals may be ready to hijack the online ad you're looking at to try to “sell” you a vehicle they don't own or have any intention of delivering.
The FBI’s Crime Complaint Center (IC3) received nearly 14,000 complaints from consumers who had been victimized or targeted by these scams from 2008 through last year. Victims lost nearly $44.5 million.
The scam most often involves consumers who find a vehicle they like advertised on a legitimate website, at or below-market price. When the buyer contacts the seller, usually via email address in the ad, the seller responds with a hard-luck story as to why they’re selling the vehicle at such a low price.
The seller then asks the buyer to move the transaction to another website, often citing security reasons, and offers a buyer protection plan in the name of a well-known entity, usually a large online company. The buyer receives an invoice and is instructed to wire the funds to an account. In some cases, sellers have posed as company representatives in a live chat, offering to answer questions from buyers.
Buyers are asked to fax a receipt showing funds have been wired then the seller and buyer agree on where and when the vehicle will be delivered. Of course, once the money is wired, there is no vehicle and the buyer’s money is gone.
In most cases, according to the FBI, the ad a consumer sees online is either phony or was hijacked from another website. When the seller asks buyers to switch to a second site, it is usually a spoof of a legitimate site where the scammer can conduct a criminal business. Any “buyer protection plan” is bogus.
The scam has a number of red flags that should alert consumers:
The BBB offers the following tips for consumers interested in buying vehicles online:
For more advice on fighting fraud, current scams and BBB Business Reviews, visit www.bbb.org or call 719-636-1155.