http://www.wdio.com/article/stories/S1642274.shtml?cat=10359

Car Shoppers Beware of Online Scam


Posted at: 07/07/2010 4:48 PM







The Better Business Bureau of Minnesota and North Dakota (BBB) is warning car shoppers to beware of websites offering too-good-to-be-true deals on repossessed cars. According to a news release, the BBB says they heard from people across the country who thought they were buying from a reputable dealer online but were actually sending money to scammers posing as legitimate, already-established community dealerships.



The release says a fraudulent website claimed to sell repossessed cars at prices well below market. Buyers were instructed to wire a deposit—as much as $5,000—to an individual rather than the company, which, according to the phony website, “helps us avoid taxes legally.” The balance was to be paid upon delivery at the consumer’s address within five days.





After paying the deposit, victims called the real dealership to arrange delivery of their car. Some customers even showed up at the lot to pick up the cars they had “bought” on the bogus site.





Car shoppers should look for the following red flags when shopping for a car online: Prices that are too good to be true. The dealer only communicates through chat or e-mail—never by phone. The dealer only accepts payment by money wire transfer.





The BBB would like you to notify them if you have been the victim of a fraudulent auto dealer online, log on to www.bbb.org and the Internet Crime Center at www.ic3.gov to file a complaint.





The mission of the Better Business Bureau is to promote, through self-regulation, the highest standards of business ethics and conduct; and to instill public confidence in responsible businesses through programs of education and action that inform, protect and assist the general public. Our hours of operation are 8 a.m. to 5 p.m. Monday through Friday. Contact the BBB at www.bbb.org or 651-699-1111, toll-free at 1-800-646-6222.