FDIC-Insured - Backed by the full faith and credit of the U.S. GovernmentHow to Spot and Avoid Phony Online Car Sales Scams
Online shopping makes it easy to browse used cars from the comfort of your home, but the Federal Trade Commission (FTC) warns that scammers increasingly use online platforms to advertise cars they don’t actually own. According to the FTC, criminals post fake listings on auction and sales sites like eBay Motors, Facebook Marketplace, and other similar sites, complete with photos, online chat, and convincing stories, to lure buyers into paying for cars that don’t exist. Scammers often claim that the sale will be protected through a well‑known retailer’s buyer protection program, and many have begun sending fake invoices that appear to come from eBay Motors, even directing victims to call phone numbers staffed by impostors pretending to be company representatives. These schemes have cost buyers hundreds of thousands of dollars in losses.
The FTC outlines several red flags that can help you identify a fraudulent online car listing. One of the biggest signs is bad or missing reviews, which you can uncover by searching the seller’s name, email, or phone number along with terms like “review,” “complaint,” or “scam.” Scammers also try to rush the sale, using pressure tactics to push buyers into quick decisions without proper verification. Another common tactic is refusing to meet in person or allow an inspection of the car, often citing excuses such as military deployment, sudden job transfer, or personal hardship. But experts strongly recommend having a trusted independent mechanic inspect a used car before any purchase.
A key warning sign is when sellers insist on untraceable payment methods like gift cards or wire transfers, something the FTC stresses is a scam every time. Buyers should also watch for post‑sale requests for extra “shipping” or “transportation” fees, another common fraud tactic. The FTC further advises checking whether the Vehicle Identification Number (VIN) in the listing matches the VIN on the actual vehicle, as mismatches are a strong indicator of fraud. A vehicle history report can help verify these details before you commit to a purchase.
The FTC encourages consumers to learn more about safe used‑car buying at ftc.gov/usedcars, and to stay updated on the latest scam tactics by subscribing to free FTC consumer alerts. Finally, anyone who encounters suspicious online vehicle listing or believes they have been targeted by scammers should report it at ftc.gov/complaint, helping protect other consumers from falling victim to similar schemes.
Source: Put the brakes on phony online car sales | Consumer Advice