Protect Yourself From Internet Fraud & Scam Artists

As honest as we consider ourselves, and as much as we want a "square deal," we need to be wary of those out there that are simply trying to get something for nothing. The information provided is intended to inform you of some current internet scams. By far, most of the deals we've seen are good deals, and both parties are happy. However, we have heard some stories that we don't want you to have to deal with.

Some General Advice on Buying and Selling Vehicles (or anything) on the Internet:

For Sellers : For Buyers : Known Scams : Accepting Payment

FOR SELLERS:

• It is best to accept only cashier's checks (but still be careful with cashier's checks - click here for info) or certified checks from a known bank. Deposit your funds immediately, and do not release your vehicle or title until those funds have cleared.
• Do not refund any money and do not release your vehicle or title until you are absolutely certain any payment has cleared your bank.
  • Verify the funds with your bank. Ensure that the cashier's check or certified check your have received is valid and has cleared.
  • If you must give a refund, make sure you have your vehicle or title in hand.
• If your buyer wants to pay more than you're asking, and is requesting you to pay them back the difference, DO NOT DO IT.
  • The deal would be much like a "cash back" home purchase. The buyer might tell you that they want the cash for improvements or some other purpose, and that this money will be financed by them. Sounds good, eh? But it's NOT.
  • This is a common scam. There are a few ways the scammer can do this, but one of the most common ideas is that you give them cash back, and then you find their entire payment is not valid. By then, they're long gone with the cash you gave them
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FOR BUYERS:

• If possible, meet the seller and personally inspect the vehicle. Even if the buyer is a long distance away, it is worth the trip to inspect your vehicle. It's easy enough to provide fake credentials (email, name, phone number, etc).
  • If you have a place of residence or business, you have something to fall back on if the deal goes bad. You have a better chance of tracking them down.
  • If someone you don't know wants to meet in a parking lot (for instance) and do the transaction, be alert. This can be a common way to do business, and can work out fine. But still, do your homework.
• Prior to Giving the seller any money, ensure that the seller owns the vehicle you are buying.
  • Request a copy of the sellers' driver's license.
  • Request a copy of the vehicle title or current registration. Ensure that it is under the same name as the seller, and that the name matches the name on their ID.
  • Consider using the services of a 3rd party escrow service. One sure service is Escrow.com - they specialize in vehicle sales between private parties. There are others out there as well.
• If asked to send money outside of the U.S. or Canada, be VERY CAREFUL. You will most likely have no recourse to recover your money if something were to happen.
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KNOWN SCAMS:

Below are a few scams that we are aware of. These are tricks that unscrupulous people are attempting to use to part good people from their money or vehicle. Most often, scammers are attempting to take your money rather than your vehicle.

• Scam 1: Offering a vehicle for a much lower price than what it's worth.
  • The seller either offers the vehicle at a "screaming deal," a price well below the book value. Or they will offer it at a more reasonable price, but will offer some sort of carrot (free shipping, etc).
  • The vehicle will be said to be held at a third party location. This will make it quite tough, or impossible, to inspect the vehicle.
  • The price will be such a "good deal" that you may overlook this and proceed with the deal.
  • You will be asked to place a sizable deposit for the vehicle. The might tell you that the last buyer backed out, and that since they live a long way away from where the vehicle is stored, they need some sort of "security." So they may ask you to send a Western Union, a MoneyGram, etc to a location near the vehicle. They will tell you to send it to yourself "for your protection." Sounds good, right? Hmmmm.
  • The seller will ask you for your name and the reference number of the transaction. THIS is where they get you. They will create a fake ID, and since they have all of your information and the reference number, they will pick up the money themselves.
  • You will never regain contact with the seller and your money will be gone.
  • MoneyGram will tell you themselves that if someone shows with the correct name of the money recipient and with the correct reference number, then there's a good chance the money will be disbursed to them.
• Scam 2: Forged Cashier's Checks
  • The buyer will send you a cashier's check. They might mail it, or send it overnight via FedEx or UPS.
  • They will send it for more money that what the seller is asking.
  • The cashier's check will be a forgery. It is usually of very high quality so that the bank teller cannot even tell. The bank will deposit into your account since they don't yet know it is a forged check.
  • The buyer will then contact the seller and demand the difference be sent to them immediately.
  • The buyer may begin threatening the buyer with calling the police, suing, calling off the transaction, etc. They will put hard tactics on the seller. They have to do this so that they can make the seller send them money before the bank realizes the cashier's check is fake (usually 7 - 10 days).
  • If the seller sends them money, and the bank later discovers the check is a forgery, those funds will be taken from the seller's account. INCLUDING those funds that have been sent to the buyer.
  • The scammers are usually located outside of the U.S. or Canada. With that, finding the scammers is virtually impossible.
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ACCEPTING PAYMENT:

• Cashier's Checks - Understand that a cashiers check does not guarantee payment until paid by the bank that the check has been drawn against. If you are paid via a cashier's check, we recommend following the following steps to ensure validity:
  • Call the bank from which the cashier's check is drawn.
  • Ask them to verify the check funds. If you have red flags from the buyers, explain that.
  • Have the check in front of you when you call so that you can provide check number, account number, signator, and any other information that may be requested.
• Direct Deposit - Never provide your account number so that the buyer may deposit funds into your account for you.
• Any Other Payment - Make certain with your bank that any funds you receive are clear before releasing your vehicle or title. Deposit any funds into your bank immediately and check with them on what precautions you should take. Ask them how long your should wait before releasing your vehicle.
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