Vehicle history and automotive data supplier HPI has warned growing numbers of buyers are falling victim to a fraud known as the ‘virtual car seller’ scam.
The company said used car buyers mistakenly think online payment systems, such as Google Wallet, will protect them if they are taken in by fraudsters.
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However, reported HPI, any money transferred to dodgy sellers via online payment systems aren’t protected, even if the car doesn’t exist, and buyers should never buy a vehicle online without seeing it and meeting the seller, no matter what the payment method is.
HPI says the virtual car scam has conned online buyers for years, tempted by adverts by UK sellers on motoring websites offering top-of-the-range cars at knock-down prices. Sellers usually claim to be based far away from the buyer, providing a reason why the car cannot be viewed there and then. Normally, vendors claim the vehicle is already in transit to a location close to the buyer, and the low price is due to the need for a quick sale. Except there’s no car, and the cash buyers money is long gone by the time they realise they’ve been conned.
Fraud and fiction
HPI operations director Phil Peace said: "Online payments systems offer many protections, but these are designed to prevent fraudulent transactions. This is leading some consumers to believe if they use a system like Google Wallet, they will be protected if they fall victim to a scam. These systems offer similar security measures offered by banks, designed to prevent your money being taken without your knowledge or consent.
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By GlobalData"The problem is, if a buyer transfers money over to someone willingly, there’s little can be done about it. Online transactions are so fast and easy now, that by the time people realise they have been duped, the sellers are long gone, leaving the buyers with a fictitious car for their money.
"Anyone who buys a vehicle with a hidden history stands to lose the vehicle and the money they paid for it. If a vehicle turns out to be stolen, it could be returned to the rightful owner and it’s a similar story for cars on outstanding finance, which actually belongs to the lender. An HPI Check offers buyers unrivalled protection and will highlight any issues, helping them avoid the fraudsters."
