Shopping for a car online has never been easier. But unfortunately, neither have scams. Law enforcement agencies across the country are warning consumers about a sophisticated fraud scheme involving fake auto dealers who lure buyers in with spoofed online ads and cloned dealership websites. These scams are designed to look legitimate, often featuring attractive pricing, professional photos, and listings that appear on trusted platforms like Carfax, Edmunds, and Facebook Marketplace.
Here’s how it works: Fraudsters create fake dealership websites or social media profiles that closely mimic real businesses. They may steal vehicle photos and descriptions from legitimate dealers or use stock images to create listings for vehicles that don’t even exist. Once a buyer shows interest, the scammer pressures them to send an irreversible payment, typically via wire transfer, for a vehicle they’ll never receive. By the time the buyer realizes something is wrong, the money is often gone.
We want to help our members stay informed and protected. If you’re considering purchasing a vehicle online, watch for these common red flags:
- The price seems too good to be true
- Limited, low-quality, or generic photos
- Mismatched vehicle details, spelling errors, or typos
- Refusal to allow a physical inspection before purchase
- Requests for payment via wire transfer, cryptocurrency, or gift cards
- High-pressure tactics claiming “another buyer is ready to purchase”
- Dealer refuses to provide a verifiable physical address
- Website URL appears suspicious, incomplete, or slightly different from a known dealership
Taking a few extra precautions can make all the difference. Before sending any money, always physically inspect the vehicle whenever possible. If you can’t inspect it yourself, consider hiring a trusted third-party, such as a local mechanic. Research the dealership thoroughly. Google the phone number and business name to look for complaints and check the address on Google Maps to confirm it’s a legitimate auto lot. Always request the Vehicle Identification Number (VIN) and obtain an independent vehicle history report through a trusted provider like Carfax or AutoCheck. Avoid payment methods that offer no recourse and consider using a reputable escrow service to ensure funds are only released once the vehicle is delivered.
If you believe you’ve been targeted by or fallen victim to an online car shopping scam, act immediately:
- Report the scam to the FTC at ReportFraud.ftc.gov
- Contact your State Attorney General’s Office or Consumer Protection Division
- File a complaint with the Better Business Bureau
- Notify FRB Federal Credit Union right away so we can help guide you through next steps
Your financial security is our top priority. If you have questions about a vehicle purchase or need assistance reviewing a transaction, we’re here to help.