How does this car dealer scam affect you?

How does this car dealer scam affect you?

By Greg Collier

Driving a new car is a thrill, but what if you end up unknowingly paying for someone else’s joyride? A concerning scam is targeting unsuspecting individuals and leaving them on the hook for cars they never intended to buy.

One car dealership in Traverse City, Michigan, has encountered this disturbing scam that preys on both car dealers and buyers. Recently, the dealership experienced a close call with a scam that appeared legitimate. Here’s how it typically unfolds: scammers pose as legitimate buyers, providing all necessary contact details and expressing interest in purchasing a vehicle online. They often request that the car be delivered to an offsite location. Everything seems above board until the credit application process begins.

The dealership conducts due diligence, asking many questions. These questions are crucial because, more often than not, the supposed buyers are using stolen identities to complete the purchase. Once the deal is done, the scammer drives away in a new car, leaving the real person whose identity was stolen to deal with the fallout. Despite these efforts, there are still many potential victims—dealerships, identity theft victims, and even lenders.

It’s emphasized to stay on top of your credit. Monitoring credit inquiries can alert individuals to any unauthorized activity, allowing them to act quickly. Locking your credit with all three major bureaus is a recommended step. This measure makes it impossible for the financing paperwork to go through and stops the scam in its tracks. Many financial institutions also offer services that monitor social security numbers and alert individuals to any suspicious activity.

While dealerships and lenders are increasingly aware of this scam, it’s crucial for everyone to stay informed. The digital nature of these transactions can leave a traceable footprint, aiding law enforcement in tracking down perpetrators. However, even with these tools, convictions remain challenging due to the scammers’ adeptness at covering their tracks.

The convenience of online car shopping is undeniable, but taking precautions can ensure that you’re not inadvertently paying for someone else’s ride.