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Shopping for a vehicle online makes it easier than ever to compare prices, browse inventory, and even complete parts of the buying process without visiting a dealership. Unfortunately, scammers are taking advantage of that convenience by creating fake dealership websites designed to look like the real thing.

The Federal Trade Commission (FTC) recently warned consumers about scammers impersonating legitimate car dealerships online. These fraudulent websites can look convincing, but sending money to one could leave you without the vehicle you thought you purchased and without the money you paid.

How the Scam Works

According to the FTC, scammers are creating bogus dealership websites and, in some cases, cloning legitimate dealership sites. They may copy logos, vehicle listings, photos, and other details from a real business. Some even include fake customer testimonials or detailed information about the purchasing and return process to make the website appear trustworthy.

Scammers may also advertise rare, classic, or difficult-to-find vehicles, hoping an attractive opportunity will encourage buyers to act before taking the time to verify the dealership or vehicle.

With today's technology, including artificial intelligence, creating a professional-looking website can be easier than you might think. A polished website alone is no longer enough to prove that a business, or the person you're communicating with, is legitimate.

Before You Send Money, Verify

If you're considering purchasing a vehicle online, take a few additional steps before providing personal information or sending a payment.

• Research the dealership independently. Search for the dealership's name along with terms such as "scam," "complaint," or "review." Remember that scammers impersonating a legitimate dealership may benefit from the real business's positive reviews, so don't stop there.
• Verify contact information from another source. Rather than relying solely on the phone number, email address, or links provided on the website you're viewing, independently look up the dealership and contact it through information you know is legitimate.
• See the vehicle when possible. Ask to see the vehicle and dealership in person before completing the purchase. If the seller won't allow it, consider that a warning sign.
• Consider an independent inspection. If distance makes an in-person visit impractical, the FTC recommends asking whether a mobile inspection service can inspect the vehicle on your behalf. A seller who refuses may give you a reason to reconsider the transaction.
• Be cautious about unusual payment instructions. The FTC specifically warns consumers to walk away if a supposed dealership insists that an upfront payment can only be made by wire transfer.

Don't Let a Great Deal Rush Your Decision

Scammers often succeed by creating excitement, urgency, or fear of missing out. A hard-to-find vehicle at an attractive price can make it tempting to send a deposit quickly so someone else doesn't buy it first.

That's exactly when it's important to slow down.

Before sending a large payment to someone you've only dealt with online, take time to independently confirm the business, the vehicle, and the payment instructions. If something doesn't feel right, stop the transaction and investigate further.

Protecting Your Money Starts With Staying Informed

Fraud tactics continue to evolve, and scams can look increasingly convincing. Whether you're buying a vehicle, shopping online, or responding to an unexpected request for money, remember: verify before you pay.

If you believe you've encountered a scam or have already sent money to a scammer, contact your financial institution as soon as possible. You can also report suspected fraud to the Federal Trade Commission at ReportFraud.ftc.gov.

Source: Federal Trade Commission, “Scammers are spoofing car dealership websites: What you need to know.”