How Car Purchase Scam Works?

How Car Purchase Scam Works?

Car buying and car selling scams grow rapidly. Proper care, homework and knowledge are required to steer clear of the tricks that are employed by fraudulent car sellers and fake car buyers. Below is an example of how car purchase scam takes place.

•    A car seller places an ad for the car he/she wants to sell online and leaves his/her email so that the potential buyers could contact him/her.

•    The fake buyer responds to the seller’s ad by email (usually with lots of grammatical and spelling errors) and notifies that he/she is interested in purchasing the vehicle and will send a cashier’s check.

•    The seller receives the cashier check from the “buyer”. Usually the amount exceeds the asked price (ranging from $4,000 to $10,000).

•    There may be various reasons for the increased amount such as paying for shipping the car to another country or because the check has already been cut before setting a price.

•    The seller takes the check to the bank and the bank approves the check within one to two days, and provides the seller with the money.

•    The seller notifies the “buyer” that the check has been honored by the bank and makes arrangements to send the extra money back to the “buyer”. Then the seller and the “buyer” plan to pick up the vehicle. The fake buyer requests the money be wired to a Western Union or a fraudulent Escrow type service.

•    The seller wires the money to the “buyer.” Later he/she is notified by the bank that the cashier’s check that was originally sent to them is counterfeit. The seller is then responsible for the money since the “buyer” has disappeared.