Car buying and selling scams online

Two scams show up often in online car sales. One targets the seller with a fake check. The other targets the buyer with a fake dealership website.

When you're selling: the overpayment

Someone posing as a buyer says they live far away and can't see the car, and sends a check as a deposit. The check is for more than your asking price. The buyer says the extra was a mistake and asks you to send the difference back.

The money may show up in your account after you deposit the check. But the bank can take weeks to find out the check is fake, and then it takes the money back. If you've already sent the difference, you're out that amount.

To protect yourself as a seller:

• Don't accept a check for more than the selling price.
• Never send money back to anyone who says they overpaid you by check.
• Never use money from a check to buy gift cards, money orders or cryptocurrency, or to wire money.

When you're buying: the copied dealer

Scammers copy a real dealership's name, listings and photos to build a fake website. They may add fake reviews, list rare or classic cars at good prices, and offer an easy return policy. Buyers pay up front and then find no record of the order and no car.

To protect yourself as a buyer:

• Search the dealer's name. Add words like "scam," "review" or "complaint."
• See the car in person. Ask to visit the car and the dealership. Be wary if the dealer refuses. Fake reviews can make a fake dealer look real.
• Have a distant car inspected. If the car is far away, hire a mobile inspection service to look at it.
• Walk away from a wire-only deal. If the dealer will take only an up-front wire transfer, don't buy.

An annotated example

What to do next

Before paying for a car online, search the dealer's name with "scam" and "complaint," and ask to see the car in person. When you sell, don't accept a check for more than the price.