BBB Sees Increase in Vehicle Vendor Scam Reports

Friday, April 5th, 2024 -- 10:01 AM

In 2023, virtual vehicle vendor scam reports to BBB increased as fraudsters targeted high-end classic car buyers and exploited vehicle history reports to steal money and information.

Since 2020, reports to Better Business Bureau have shown that scammers used the COVID-19 pandemic to list non-existent vehicles of all kinds on real online marketplaces. In more recent reports, they are increasingly turning to fake websites modeled after licensed sellers.

These look-a-like websites use stolen photos, contact information and even vehicle identification numbers (VIN) to fool consumers. In “Virtual vehicle vendor scams and related fraud persist post-pandemic," Better Business Bureau examines the patterns of reports, reviews the amount of money lost and learns from those caught up in the scams to protect the public through education.

Online vehicle vendor scam reports to BBB Scam Tracker declined in 2022 but increased to new highs in 2023. Buyers 45 and older accounted for more than three-quarters of all reports on virtual vehicle vendor scams filed with BBB Scam Tracker.

Scammers increasingly rely on fake websites, often stealing pictures and listing information from licensed and legitimate sellers. Classic car buyers were targeted with low prices and promises to deliver rare cars across the country.

Fake vehicle history reports rose over the last three years. While median losses are smaller, consumers reported personal data theft as a part of these scams. Close to 700 BBB Scam Tracker reports on fraudulent vehicle sales, escrow scams and fake vehicle reports.

$12,600 median loss in fraudulent vehicle sale and escrow scams. $45 median loss in fake vehicle report scams BBB has examined virtual vehicle vendor scams in-depth since 2020.

But scammers continue to change their tactics. The losses in these scams can be enormous. BBB has examined virtual vehicle vendor scams in-depth since 2020. But scammers continue to change their tactics.

The losses in these scams can be enormous. J.L. from Omro, Wisconsin recently reported his experience to BBB Scam Tracker, saying that he responded to an ad for an automobile for sale listed on Facebook Marketplace for $1,200.

The seller explained the cost was low because it had belonged to her deceased son, and stating she was leaving to go overseas on military duty. The seller then instructed the buyer to purchase and pay with six $200 eBay gift cards.

The buyer says he realized at that point that it may be a scam and messaged the seller offering to buy the car only if he could pay cash and pick it up in person. He says “at that point all email contact was gone. I truly believe I was almost scammed.”

Do not purchase a vehicle report on your own vehicle for an interested buyer. View a vehicle in-person if possible, or send someone you trust. Be wary of too-good-to-be-true prices. Opt for vehicle pick up over delivery whenever possible. Resist high-pressure sales tactics urging quick action.

Use only approved Vehicle Identification Number (VIN) lookup websites. Visit BBB.org to check out a business or register a complaint, BBB Scam TrackerSM to report a scam and bbb.org/scamstudies for more on this and other scams.

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