| If you've never been a victim of fraud, you're lucky! | | | | week from all over the country. About 1/3 of the |
| A Gartner Research study found that approximately | | | | people calling have already paid. |
| 7.5% of Americans lost money in financial fraud scams | | | | Stopping the Scammers Isn't Easy |
| in 2008, many of them through online fraud. Between | | | | The scam is extremely difficult to prosecute. The |
| phishing attacks (luring users to fake Web sites), fake | | | | perpetrators are smart enough to keep the vehicle |
| chat room sessions, and spyware, online consumers | | | | cost below $5,000 because the FBI doesn't investigate |
| are vulnerable - as are online merchants and service | | | | and prosecute fraud schemes under that amount. |
| providers. | | | | Local law enforcement can't do anything because the |
| DAS Auto Shippers, a national auto transport | | | | fraudsters are usually located in Eastern Europe or |
| company, has identified a used car scam that's run by | | | | Asia. |
| fraudsters using online sales and auction sites to | | | | Often, the auto shipping companies ask the would-be |
| advertise used cars, trucks, and SUVs at sharply | | | | buyers to play along with the scam until the fraudulent |
| discounted prices. Buyers think they're getting a great | | | | seller sends the email with payment information. Using |
| deal: "Wow! A used Lexus SUV worth over $12k for | | | | the email information, they go work tracing the IP |
| just $4800? What a deal!" And that would be a great | | | | addresses and tracking down the hosting companies |
| deal - if the seller actually had a vehicle for sale. | | | | to get the bogus Web sites shut down. |
| Here's how the scam works. | | | | The good news is that everyone works together to |
| Buy It and We'll Have It Shipped | | | | combat fraud schemes like this one. Unfortunately, the |
| First, the scammer lists a car on eBay, Craigslist, | | | | scammers just keep moving the sites around and |
| Yahoo Motors or another sales/auction site. He | | | | defrauding consumers. |
| provides what seems to be all the information a car | | | | How to Recognize an Online Used Car Scam |
| buyer could possibly want: VIN, photos, mileage | | | | Although each scammer uses a slightly different sales |
| information, etc. The scammer has this information | | | | pitch, there are common warning signs. If the seller |
| because he's copied it from a previous, legitimate | | | | uses even one of these techniques, think very |
| online listing for a vehicle. It's probably a car that sold | | | | carefully before buying: |
| six months to a year before. | | | | 1. The seller is a soldier deployed overseas or is |
| Even with all that information, most buyers are careful. | | | | working overseas. That's why he has to sell the |
| They contact the "seller" and either ask to see the | | | | vehicle quickly (and at a loss) and/or why it's crated up |
| vehicle themselves or have someone inspect it for | | | | and not available for inspection. |
| them. | | | | 2. The vehicle costs less than $5,000 - but not much |
| Of course, the person perpetrating the fraud doesn't | | | | less. The scammers lure buyers with prices that are a |
| have a vehicle to show, so he tells the buyer that | | | | fraction of the vehicle's book price. So they'll offer a |
| Dependable Auto Shippers (DAS) or another auto | | | | $15,000 SUV for just $4900. Deals that seem "too |
| shipper already has the vehicle crated for shipping. But, | | | | good to be true" usually are. |
| the fraudster adds, the buyer shouldn't worry because | | | | 3. Send your payment to a third party. In an effort to |
| the vehicle is covered by the DAS (or another | | | | make the transaction seem risk free, the seller tells |
| company's) Vehicle Protection Program. If the buyer | | | | you that the third party, whether eBay, DAS, or an |
| doesn't like the vehicle when it arrives, he gets his | | | | escrow service, will immediately refund your money if |
| money refunded. | | | | you don't like the vehicle. Understand that legitimate |
| Once the buyer agrees to the deal, the fraudulent | | | | auto transport companies accept payment for |
| seller explains that someone from the "Vehicle | | | | transport services only. They don't hold money for third |
| Protection Program" will contact them to arrange | | | | parties or take payment for vehicles. |
| payment. The fake email, which contains payment | | | | 4. You have to send payment by wire transfer. |
| information and a tracking number, directs the buyer to | | | | Scammers don't take payment by personal check, |
| a bogus Web site that looks legitimate. Scammers | | | | cashier's check, PayPal, credit card, or any other |
| often make complete copies of other companies Web | | | | traceable method. Anyone requesting payment by |
| sites and host them at different domain names. | | | | anonymous wire transfer is probably engaged in some |
| Often, the buyer isn't aware he's been scammed until | | | | sort of fraud. |
| he contacts the auto transport company to ask about | | | | The best defense against this type of fraud is |
| delivery dates or request additional information. This | | | | education. Consumers who are alert to signs of fraud |
| fraud scheme is widespread. For instance, DAS Auto | | | | can help get these scams shut down before the |
| Shippers reports receiving three or more calls each | | | | perpetrators are able to defraud a lot of people. |