Authorities Warn Consumers Of Scammers Creating Fake Car Dealer Websites

Legitimate car dealers sometimes engage in shady and deceptive tactics. So what happens when scammers decide to impersonate them? Rather than being out thousands, one can end up losing their entire purchase price and without a car at all. Wisconsin just issued a warning to all consumers about this issue.

According to the state’s Department of Motor Vehicles (DMV), cloned dealer websites are on the rise. If you’re wondering what that means, it’s exactly what it sounds like: a website that looks real, sounds convincing, and may even feature a domain name that appears legitimate. But in reality, it’s all smoke and mirrors, designed to fool unsuspecting buyers into paying for a car that doesn’t exist.

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“The fraud scheme starts online as a fake storefront,” DMV Dealer and Agent Section Chief Maura Schifalacqua explained. “An individual creates a website or a social media profile claiming to be a Wisconsin dealership. Stock images or photos of real vehicles and real Wisconsin dealerships are included to make the website seem legitimate. However, there is nothing legitimate about it. The advertised vehicles may be listed at below market value causing interested consumers to take the bait.”

“In one case, the business never existed,” Schifalacqua said. “In many cases, the fraudster interacts with the consumer by phone or email. The buyer might receive a bill of sale and several photos of a vehicle and agree to purchase by wire transfer, believing the seller will ship the car to them. After the wire transfer is completed, the seller stops all contact, and the customer eventually realizes they’ve become a victim of fraud.”

The State Department of Transportation had several suggestions to help consumers avoid this scam. First and foremost, cloned sites will likely have several spelling and grammatical errors. A little research into the dealer in question can go a long way too. If phone numbers, addresses, and other contact info don’t match, you might have bumped into a clone site.

Some states, including Wisconsin, have an active dealer list online that buyers can check. If the dealer they find isn’t listed, they might be suspect. Perhaps most clear of all the suggestions, if something doesn’t feel right, just walk away. Imagine if the person you’re trying to buy from really is a scammer. Losing all of that cash is certainly a far worse fate than the possible upside of simply getting a good deal on a car ever could be.