How to Avoid Crooks When You Buy a Car Online
NEW YORK (TheStreet) -- Go back a decade or so and many people were so leery of the Internet they wouldn't order so much as a book. Though confidence has grown, some of that old caution is worth preserving, with online shoppers increasingly becoming victims of fraud for big-ticket items such as cars and trucks.
Shopping for a home online is pretty safe, because few people buy a home they haven't checked out in person and because the title company makes sure the seller really owns the property. Small items are sometimes offered by online crooks, but reputable sites such as eBay (EBAY) have safeguards, and there's not much money at risk when you order a sweater.
But cars and trucks present a special problem because real money is at stake, and because buyers of used vehicles often have a hard time finding what they want nearby. Rather than travel hundreds of miles just to inspect a vehicle for sale, some buyers pay up front only to find later that the vehicle doesn't exist.
Find that hard to believe? Actually, online vehicle fraud is surprisingly common. A Romanian fugitive and six accomplices in an international auto-sale scam were promoted recently to the FBI's most-wanted list. The FBI says the group targeted Americans through legitimate websites such as eBay, Cars.com and AutoTrader.com, typically offering vehicles priced from $10,000 to $45,000."The defendants employed co-conspirators who corresponded with the victim buyers by email, sending fraudulent certificates of title and other information designed to lure the victims into parting with their money," the FBI said. The scammers used phony passports so accomplices could open U.S. bank accounts to receive buyer's wire transfers, the FBI alleges. Last year there were more than 17,000 consumer complaints about online auto fraud, with alleged scams costing more than $64 million, according to The Internet Crime Complaint Center. The most common victims are men aged 30 to 60. (WU) and Moneygram (MGI). Reputable sites such as eBay Motors offer purchase protection programs for sales completed through the site. The site's Vehicle Purchase Protection program, for instance, will refund up to $50,000 for a fraudulent purchase.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV