One of the most prominent types of fraud in the UK at present is car purchase scams, where fraudsters pose as legitimate sellers of vehicles on auctions of marketplaces, only to disappear once payment has been completed. According to Action Fraud (the UK’s national fraud and cybercrime reporting centre), in 2021 alone, over £30 million was reported as lost to car-related fraud. This includes both buying and selling scams.
In this article, we’ll explore how these scams work, the warning signs to look out for, and most importantly, how you can protect yourself from falling victim to them.
What is a Purchase Scam?
A purchase scam often occurs via auction and marketplace sites, such as Facebook marketplace and eBay. The scammers will often have lots of photos and a detailed description of the vehicle, which will be listed at below the market average price in order to attract more attention from perspective buyers.
Once receiving contact, the scammers will provide further details of the vehicle to the victim, and will often claim they are working on behalf of a company or car dealership in order to appear more legitimate.
The buyer will normally ask to see the vehicle in person, to which the scammers will make an excuse such as it is locked away in storage. To reassure the buyer however, the scammer will normally offer a returns policy if the buyer is unhappy with the car.
The scammer will then suggest making the payment via bank transfer rather than through the auction websites usual method, often using the excuse to avoid fees. Once the payment has been made, the scammer will provide a delivery date for the vehicle, and will then have no further contact with the buyer.
Why do so many victims fall for purchase scams?
There are number of a reasons as to why car purchase scams are so prevalent, which we will take a look at below.
The main reason as to why most victims choose the car advertised in the first place is due to the low price of the vehicle. The vehicle is often listed at a considerably lower price than the average market value. This leads to more buyers being drawn to the car, and subsequently more victims falling for the scam.
Furthermore, the scammers will often pose as representatives from reputable car dealers, and will provide documentation which confirms this is the case. A google search of the company will come up with a registered business on the companies house, which convinces victims they are dealing with a genuine company.
Finally, the scammers will offer buyers a return policy, should they not like the car. Again, this helps to lure buyers into a false sense of security when purchasing the vehicle, and thinking they have protection should they not like the vehicle.
Warning Signs of a Car Purchase Scam
It’s important to be aware of the common tactics scammers use to make the scam more convincing. Here are some key red flags to watch out for:
- Low market price: If the car is being sold at a significantly cheaper price than the market value, always be cautious. If something seems too good to be true, it probably is.
- No option to view the car before purchase: If the seller is making excuses as to why you are not able to view the car before purchasing, this is huge red flag and very common in almost all purchase scams.
- Suggestion of an alternative payment method: Scammers will often ask you to pay not through the auction/selling site, in order to avoid fees. Again, this is big warning sign that you may be falling for a car purchase scam.
How to Protect Yourself from Car purchase Scams
There are a number of ways you can protect yourself from car purchase scams:
- Don’t purchase outside of the selling website. Purchasing though sites such as eBay will mean you have buyer protection should anything go wrong with the purchase, and you will be able to receive a refund should the car not be delivered.
- Always research the vehicle you are buying. Check the vehicle’s history through websites such as the DVLA, and always request a V5 logbook from the buyer to ensure the owner is the seller.
- Always view the vehicle in person before purchasing. If the scammer makes excuses as to why you are not able to do this, it is likely they are trying to hide something and are not being entirely truthful with you.
What to Do If You Fall Victim to a Purchase Scam
If you’ve fallen victim to a car purchase scam, here are some steps you can take in an attempt to recover your funds:
- Report the incident to your bank immediately. The bank can attempt a chargeback to recover the stolen funds from the account it was sent.
- File a police report: The police may be able to help track down the individual who had sold you the car.
- Get in touch with us at WRS to see if we can be of assistance in recovering your lost funds.