Greg's Corner

CARFAX Scam Costs Buyer $45,000

By Greg Collier

CARFAX has built a reputation as a trusted source for vehicle history reports, often used by consumers to make informed car-buying decisions. While the platform’s reports remain comprehensive and generally reliable, recent developments have raised concerns about how its site is being used by fraudsters in increasingly sophisticated ways.

A consumer in Bucks County, Pennsylvania, fell victim to a vehicle scam that leveraged CARFAX listings to give the illusion of legitimacy. She and her husband were seeking a luxury SUV and located one on CARFAX listed for sale by what appeared to be a dealership based in Nebraska. Despite initial concerns about the distance, they were reassured by the dealership’s polished online presence and the fact that the listing originated from a site as widely trusted as CARFAX.

The couple made direct contact with someone claiming to be the dealership owner. In an attempt to verify the car’s existence, they even requested a video of the vehicle. When the video arrived, they believed it was authentic and proceeded with the purchase. They wired $45,000 with the understanding that the vehicle would be shipped within a week. But the vehicle never came.

It was later discovered that the couple had not been communicating with the actual dealership. The legitimate business did exist, but it had no online footprint and did not advertise on CARFAX. The real dealer confirmed multiple individuals had been scammed in his name, unaware that his business identity was being used by criminals.

Investigators uncovered that this was part of a broader scheme known as dealership cloning. Fraudsters reportedly duplicate or closely imitate listings from real dealerships and create convincing websites to support the ruse. These listings are then promoted across various platforms, including those that consumers tend to trust without question.

After the funds were transferred, the scammers disappeared, leaving the victims with no vehicle and little recourse. A second individual reported being defrauded out of $18,000 over the same vehicle posted on another site. The fake dealership’s website has since been removed, and local police are investigating, though details remain limited.

This incident serves as a reminder that even when using well-known platforms, due diligence is essential. Experts recommend involving a reputable escrow service when purchasing a vehicle without seeing it in person. The outward appearance of legitimacy is no guarantee against fraud, especially as scammers grow more adept at mimicking credible businesses.