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Cedar Rapids, Iowa 52401
From the Bureau: Online vehicle sales may be scams
Seller and shipper hoaxes increasing in number
By Bobby Hansen, - Better Business Bureau
Oct. 6, 2024 5:00 am
The Gazette offers audio versions of articles using Instaread. Some words may be mispronounced.
The Better Business Bureau found that consumer problems and complaints subsided during the height of the COVID pandemic, but that the number and breadth of online vehicle sales scams continued to increase.
Perhaps it was because consumers had more time on their hands ,,, and so did scammers. But what began as a few fraudulent companies — purporting to be located in Iowa selling non-existent vehicles, RVs and equipment — exploded in number.
Initially, BBB investigated online ads for classic cars at rock bottom prices, and that scheme has now morphed into various fake sites, some impersonating recently closed or similarly named companies, selling all sorts of vehicles, boats, farming and construction equipment.
BBB is typically made aware of a fake site or social media post by consumers calling to check on the veracity of a company. It takes only a little research to find that the site was just formed and the details reveal a familiar pattern and website template using falsified or stolen photos and descriptions with irresistible prices.
These “seller” and “shipper” cons, using virtually identical websites and the same business model appear to be part of a larger escrow and shipping scam sweeping the country.
The enticement of below-normal market value price and a fabricated sob story as to why the price is so low frequently lures the potential buyer into wiring funds to the seller/shipper to make the purchase as well as handle escrow and transportation.
Once a wire transfer is made, it is virtually impossible to recoup the funds. Frequently, sales are culminated via text and email and little personal conversation is involved.
It is important to note that often these companies tell consumers that this is a newer, safer way to complete a transaction, when just the opposite is true.
Tips on avoiding
BBB offers these tips for how to recognize a potential online vehicle scam:
- The seller shares a sad story and can’t meet or allow an inspection. The seller has lost a loved one, moved, is a soldier deployed or is working overseas, hence the reason to sell quickly. Don’t trust photos and insist on meeting and inspecting the vehicle before releasing funds.
- The vehicle price is below market value. Scammers tempt buyers with prices that are low so buyers will act quickly. They indicate that shipping costs will be paid by the seller, even if the product is returned. Deals that seem “too good to be true" usually are.
- A third party handles the money and/or shipping. In an effort to appear legitimate, the seller alleges that the third party, perhaps eBay or an escrow service, will refund your money if you are not satisfied with the purchase.
- The company uses a professional-looking website. Check the domain registration. Just because a site, email or invoice looks official does not mean that it is. Check bbb.org and search online for complaints. If the only internet presence is a new website, that’s a warning sign.
- Payment is by wire transfer. Scammers avoid payment by personal or cashier’s check, PayPal, credit card or other traceable method. Wire transfer to someone you never met face-to-face for an unseen product is a red flag for fraud. Pay by credit card whenever possible in case you need to challenge the payment.
Bobby Hansen is regional director for the Better Business Bureau Cedar Rapids office. Comments: (319) 365-1190; info@dm.bbb.org
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