Classic Car Fraud Alert- A New Scam Is Being Used to Lure Buyers to Non-Existent Cars
ALERT! Recently, one of my clients was the victim of a scam, which the classic car community needs to be aware of because the fraud directly implicates this market. While this scam was perpetrated using eBay, it could easily have been used on other classic car sales websites. Following below is his account of what happened and the danger signs you need to pay attention to if considering on-line purchases. Jon W. Lundberg, Sr., ASA.
Recently I bought a 1966 GTO in which the entire transaction turned out to be a fraud. Not only was there no car, the supposed seller did not even know that she was selling something on eBay. eBays insurance company tells me now as part of their investigation that until about six weeks ago, a Romanian gang had been using this scam to sell high-end motorcycles but has now moved on to classic cars.
First, they hack into the account of someone who has a low eBay score. This pretty much ensures that the seller will not notice anything going on in their eBay account because they rarely access it. (First warning sign, a seller with a low score selling a relatively high end item),
Next, they copy an ad for a classic car that is no longer active. Vehicle description, photos, VIN, Data Plate, etc. and paste that ad into the sellers account as a for sale classic car. Now they can see any questions that have been asked by prospective buyers along with any non-eBay emails and the phone numbers you may have put in your question about the item, shipping, etc. Boom! Now they have YOU. (Second warning sign: questions you asked the seller through eBay are not showing up below the item.)
After you win the item, you get a call from someone purporting to be the sellers brother (or whatever) saying he is assisting the relative to sell the car because he/she is too broken up over the recent passing of their husband/child who owned the car and Just wants it out of there so they can move on with their lives. How quickly can you meet me to inspect the car/ take delivery? (Third warning sign: manipulation).
Almost immediately after the email or call from the sellers brother, you will receive a very official looking invoice for the item with detailed instructions about how to pay for the item by bank to bank wire transfer, along with detailed information about eBays Vehicle Protection Plan. This is another (very good) copy/paste of an actual eBay invoice. (Fourth warning sign: the same invoice does not show up in your eBay inbox-which I did not crosscheck: this was my biggest mistake before actually wire transferring the funds).
After I paid for the item, I did not get the usual notification from eBay within three hours of the wire transfer. Panic Button time! I called the bank to stop it-too late. I called eBay, which confirmed that the invoice I got in my gmail was a fraud.
I have now spent the last week trying to recover my money, filling out FBI Economic Crimes reports, reports to multiple law enforcement departments, forms for the banks and eBays insurer. Dont get reeled in like I did. Pay attention to the warning signs above starting with seeing an item from someone with a low eBay score showing up with complete information like the VIN, data plate, engine code, etc. Ask yourself: if this was one of my few experiences selling ANYTHING on eBay-let alone a classic car: Would the seller know enough about selling to include undercarriage shots, the data plate, and all the stuff classic car buyers look for?
Please note. None of this experience was eBays fault. Those of ill-intent have successfully gamed their system. eBay are all over this and will resolve the issue. Other car sales websites may have also been targeted by the same scammers. In the meantime, you have been warned as to the new due diligence level required.
updated by @jon-w-lundberg-sr: 12/05/16 08:53:52AM
