FORT WAYNE, Ind. (WOWO) — Hoosiers shopping for a new or used vehicle online are being warned to slow down before sending money to a dealership they have never visited.
The Federal Trade Commission says scammers are increasingly creating fake car dealership websites designed to look nearly identical to legitimate businesses.
The agency says artificial intelligence is making it easier for criminals to create convincing websites featuring dealership logos, vehicle listings, photographs and even fabricated customer reviews.
Scammers may promote those websites through social media, often advertising vehicles at prices significantly below what legitimate dealers are charging.
The low price can be one of the biggest warning signs according to Fox 59 Indianapolis.
According to the FTC, fake dealerships may go beyond simply posting vehicle listings. The websites can include detailed explanations of the purchasing process and attractive return policies designed to make potential buyers feel comfortable completing a transaction.
But the vehicle may not actually exist.
The FTC recommends that consumers take several steps before making a purchase from an unfamiliar dealership.
Start by searching for the dealership’s name online along with terms such as “scam,” “review” or “complaint.” Negative reports can be an important warning sign.
Consumers should also remember that scammers impersonating legitimate dealerships can use the real company’s name, address and even positive reviews to make a fraudulent operation appear legitimate.
That’s why the FTC recommends going a step further whenever possible.
Ask to see the vehicle and dealership in person.
If a seller refuses to allow an in-person visit, that’s a reason to reconsider the purchase.
For consumers shopping from a dealership located too far away to visit, the FTC recommends asking whether an independent mobile inspection service can examine the vehicle.
If the seller refuses to allow an inspection, the agency recommends considering another seller.
Consumers should also independently verify the dealership’s contact information.
That includes checking the business’s actual phone number, email address and physical location rather than relying solely on information provided through a suspicious website or social media advertisement.
Payment methods can also provide a warning.
The FTC says consumers should be particularly cautious if a supposed dealership insists that a vehicle purchase be paid for by wire transfer.
A request to wire money can be a significant red flag, particularly when combined with an unusually low vehicle price or pressure to complete the deal quickly.
Indiana consumers have another resource for checking a dealership’s legitimacy.
The Indiana Secretary of State maintains a database that allows consumers to search for licensed automobile dealers operating in the state.
Consumers who cannot locate a dealership in the state’s licensing database should be cautious about doing business with that company.
The FTC’s warning comes as artificial intelligence makes it easier for scammers to create professional-looking online operations that can be difficult to distinguish from legitimate businesses.
That means consumers should not assume a website is legitimate simply because it looks polished or contains familiar logos and convincing photographs.
Before sending thousands of dollars for a vehicle, consumers should independently verify the seller, confirm the business is properly licensed, inspect the vehicle or arrange for an independent inspection and be wary of payment requests that offer little protection.
The FTC’s bottom line: If a vehicle’s price looks too good to be true and the seller won’t allow you to verify the car or dealership, it may be time to put the brakes on the deal.
