Car Dealer Scam Turned Against Private Sellers

The Changing Landscape of Car Sales

The car sales industry has always been fraught with challenges, but the digital age has introduced new complexities. According to a 2022 report by Statista, the global online car sales market is expected to reach $722 billion by 2025. This surge in online transactions has made it easier for scammers to exploit both buyers and sellers.

The New Scam Targeting Private Sellers

How It Works

Scammers have devised a sophisticated scheme to defraud private car sellers. Here’s a step-by-step breakdown of how the scam typically unfolds:

1. Initial Contact: The scammer, posing as a buyer, contacts the seller via email or a classified ad site.
2. Engagement: The scammer expresses interest in the car and asks for details about its condition, price, and location.
3. Fake Story: The scammer concocts a story about buying the car for a relative or friend, often involving an overseas transaction.
4. Payment: The scammer sends a cashier's check for an amount significantly higher than the asking price, claiming the excess is for transportation costs.
5. Cash and Transfer: The seller is instructed to cash the check, keep a small amount for their trouble, and give the rest to a "transport agent."
6. The Sting: The check turns out to be counterfeit, leaving the seller without their car and out of pocket.

Real-Life Example

Here is an actual email received by a dealership:

"Hi Seller, I am interested in the immediate purchase of the item. Could you kindly let me know the present condition, availability, asking price, and the current location? I am willing to send your payment by check and accept shipping responsibilities via my shipping company. Email me at once, thanks in advance. Kevin"

The Aftermath

Once the seller realizes the check is fake, the car is often already on its way to another country, possibly ending up in a chop shop. The transport person is usually just a middleman, making it difficult to trace the scam back to the original perpetrator.

Sample Scam Emails

Here are some other examples of scam emails received by sellers:

• Email 1:

  "Hello, I would like to make a few inquiries about the above-mentioned item. I would like to know how many owners it has had before being put up for sale and how many years it has been in use. I would also like to know if the asking price is your final price or if it can be negotiated. Payment would be made through a cashier's check payable in your name. A client of mine owes me for a contract, and I wouldn't want to spend the money recklessly. Kindly get back to me as soon as possible. Regards, Gerald."

• Email 2:

  "Hello seller, My Name is Rolland Jaycob. I am interested in the immediate purchase of your item. I need more pictures of the car. Before proceeding, I have a few questions: 1. Do you accept a cashier's check or money order as payment? 2. What is your final asking price? 3. Will you allow my shipping company to pick up the item? 4. Please send your full name, contact address, and phone number to mail out the payment today. 5. Will you be able to send the excess funds back to the shipping company via Western Union? If you agree, please get back to me with your details. God bless. Rolland."

• Email 3:

  "Dear Sir/Madam, My name is Mr. Terry, based in London, United Kingdom. I am interested in buying your car and would like to pay by check. Please let me know the amount you want to sell it for. Regards, Terry."

Protecting Yourself from Scams

Tips for Private Sellers

1. Verify the Buyer: Always verify the identity of the buyer. Use video calls to confirm their identity and intentions.
2. Payment Methods: Avoid accepting cashier's checks or money orders. Opt for secure payment methods like bank transfers or escrow services.
3. Consult Authorities: If you suspect a scam, consult local authorities or the Federal Trade Commission (FTC) for guidance.

Interesting Stats

• According to the FBI, internet crime complaints involving vehicle scams resulted in losses exceeding $54 million in 2020.
• A study by the Better Business Bureau found that 29% of online purchase scams involve vehicles, making it one of the most common types of fraud.

Conclusion

The rise of online car sales has created new opportunities for scammers to exploit private sellers. By understanding the mechanics of these scams and taking preventive measures, sellers can protect themselves from falling victim. Always stay vigilant and consult trusted sources for advice.

For more information on how to protect yourself from online scams, visit the Federal Trade Commission's website.

Sources:

1. Statista
2. FBI Internet Crime Report 2020
3. Better Business Bureau