Buying used cars over the Internet is convenient\u2014and it\u2019s also a great place for scam artists, looking to get their hands on your money.<\/p>\n
In recent years, along with the increase in online car purchases, there\u2019s been a huge rise in online fraud. According to the 2012 Internet Crime Complaint Center annual report, online auto fraud accounted for over 17,000 complaints, adding up to $64 million in consumer losses.<\/p>\n
The scam usually begins with a used car being advertised on a respectable website \u2013 with some urgent-sounding reason for an incredibly low asking price. Before you decide on buying the type of car you want, get a quote on car insurance<\/a> for the vehicle to see what it\u2019s going to cost you.<\/p>\n Online car-buying scams are getting more sophisticated; increasingly, they are using website designs that look very similar to the legitimate companies’ websites, sometimes even displaying the legitimate companies’ logos.<\/p>\n Scammers are even going so far as to include 800 numbers and live-chat with unsuspecting buyers to provide more detailed information on the fake buyer-protection programs they play up.<\/p>\n So, what can you do to prevent from becoming a victim? First, watch out for these red flags.<\/p>\n Avoid sellers who:<\/strong><\/p>\n \u2022\tAdvertise cars at too-good-to-be true prices. Actions to protect yourself:<\/strong><\/p>\n \u2022\tCall the seller to establish phone contact. If the seller ignores details agreed to via e-mail or is unable to answer questions about their location or the car\u2019s whereabouts, it\u2019s probably a scam.
\n\u2022\tWant to move transactions from the original website to another site.
\n\u2022\tClaim that the transaction is guaranteed by PayPal<\/a>, Craigslist<\/a>, eBay<\/a>, or other online marketplace. These sites do not guarantee that people using their services are genuine.
\n\u2022\tRefuse to meet in person or allow potential buyers to inspect the car ahead of time.
\n\u2022\tAsk for funds to be wired ahead of time. (Scammers use wire transfers because it\u2019s the same thing as sending cash in the mail. Once the money is gone, it\u2019s lost for good.)
\n\u2022\tDemand immediate payment due to some phony reason, such as military deployment or a tragic family emergency.
\n\u2022\tRequire that the money be sent to a specific escrow account. You should choose the escrow service.<\/p>\n
\n\u2022\tGet your own CARFAX report (Scammers pull real CARFAX reports of real cars to represent fake listings.
\n\u2022\tCheck with the National Insurance Crime Bureau. Their free database includes flood damage and other information about a car’s history.
\n\u2022\tVerify that the online escrow company you are using is legitimate. Check their Web site for spelling or grammatical errors \u2013 they may have been copied from real sites.
\n\u2022\tVisit the escrow\u2019s Web site directly, not through a link sent to you by the seller.
\n\u2022\tResearch the escrow company through the Better Business Bureau.<\/p>\n