Considering Buying An Automobile Online? FBI Issues Warning
Posted: Tuesday, August 16, 2011
by Joel Hendon
http://hebronics.org/index.html
You are free to purchase a car online if you have a confirmed good deal and are confident of the company’s or individual’s honesty, but be careful and take the precautions issued by the Federal Bureau of Investigation.
Yesterday, August 15, 2011, the FBI’s Internet Crime Complaint Center (IC3) issued an alert concerning a certain type of scam being used in fraudulently taking funds from unsuspecting buyers. They tell us that there are variations in the method used but they give an example showing essentially how they pull it off.
“In the e-mail, the seller asks the buyer to move the transaction to the website of another online company….for security reasons….and then offers a buyer protection plan in the name of a major Internet company (e.g., eBay). Through the new website, the buyer receives an invoice and is instructed to wire the funds for the vehicle to an account somewhere. In a new twist, sometimes the criminals pose as company representatives in a live chat to answer questions from buyers.” (FBI Scam Alert: August 15, 2011)
Once the buyer wires the funds to the seller, the seller may ask him to submit another receipt to acknowledge the transaction has been made and then discuss the time and place for delivery of the vehicle.
But by the time of the scheduled vehicle delivery, the scammer has the funds and has disappeared.
You may think this is a rare occurrence, however, the FBI’s IC3 reports they received almost 14,000 such complaints from 2008 through 2010 and the lost money from these victims amounted to nearly $44.5 million dollars. So beware. Here is a list of warning signs to watch for if you are planning for buy an auto online.
¦Cars are advertised at too-good-to-be true prices;
¦Sellers want to move transactions from the original website to another site;
¦Sellers claim that a buyer protection program offered by a major Internet company covers an auto transaction conducted outside that company’s website;
¦Sellers refuse to meet in person or allow potential buyers to inspect the car ahead of time;
¦Sellers who say they want to sell the car because they’re in the U.S. military about to be deployed, are moving, the car belonged to someone who recently died, or a similar story;
¦Sellers who ask for funds to be wired ahead of time. (ibid)
These warnings are good advice. No seller should refuse to meet the buyer for any reason before the deal is closed.
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