Victims
lose thousands to scammers posing as dealers online
Better Business Bureau is warning car
shoppers to beware of websites offering too-good-to-be-true deals on repossessed
cars. BBB has heard from people across the country who thought they were buying
from a reputable dealer online but were actually sending money to scammers posing
as legitimate, already-established community dealerships.
“Because scammers essentially steal the
identity and good name of real auto dealers, car shoppers will think that they’re
buying a car from a reputable business,” said Sheryl Bilbrey, San Diego BBB
President/CEO. “The truth is they’re being sold a bill of goods by a
coordinated, agile, and in all likelihood, overseas outfit of scammers.”
Most recently, one Memphis
auto dealer, America Auto Sales (www.memphisautoworld.com),
received more than 1,000 calls from consumers across the country who had
shopped for a new car on www.americautosales.com
thinking that it was the website of the Memphis
dealership. The phony website used the name, address and contact information of
the real dealer.
The fraudulent website claimed to sell repossessed
cars at prices well below market. Buyers were instructed to wire a deposit—as
much as $5,000—to an individual rather than the company, which, according to
the phony website, “helps us avoid taxes legally.” The balance was to be paid
upon delivery at the consumer’s address within five days.
After paying the deposit, victims called
the real dealership to arrange delivery of their car. Some customers even
showed up at the lot to pick up the cars they had “bought” on the bogus site.
Similar websites have posed as many different
dealers in Colorado, Florida,
Georgia, Michigan,
New Mexico and Texas. The websites are often taken down after a few
days only to crop up shortly thereafter under a different URL address and under
the auspices of another legitimate dealer.
BBB recommends that car shoppers look for
the following red flags when shopping for a car online:
- The
prices are too good to be true.
- The
dealer only communicates through chat or e-mail—never by phone.
- The
dealer only accepts payment by money wire transfer.
If you have been the
victim of a fraudulent auto dealer online, notify your BBB at www.bbb.org and the Internet Crime
Center at www.ic3.gov to file a complaint.