Wisconsin DMV Warns of Rising Online Vehicle Sales Fraud – What You Need to Know
BY: Jami Noyes
As online vehicle sales become more common, so do scams targeting unsuspecting buyers. The Wisconsin Department of Motor Vehicles (DMV) recently issued a warning about a surge in online vehicle sales fraud, urging residents to exercise caution when purchasing cars online. Scammers are creating fake listings, impersonating legitimate sellers, and using deceptive tactics to steal money and personal information from buyers.
At Lake Ridge Bank, we prioritize your financial security and want to help you stay informed about these evolving fraud threats. Here’s what you need to know to protect yourself from online auto sales scams.
How Online Vehicle Sales Scams Work
Fraudsters use various deceptive methods to trick buyers, including:
Fake Listings – Scammers post vehicles for sale on legitimate platforms like Facebook Marketplace, Craigslist, or even spoofed dealership websites, often pricing them well below market value to lure buyers.
Phony Escrow Services – Some scammers claim they’ll use a "third-party escrow service" to handle payments, only for the buyer to later discover the service is fake.
Title and VIN Fraud – Criminals may alter vehicle identification numbers (VINs) or provide forged titles, making it nearly impossible to verify the vehicle's legitimacy.
Pressure Tactics – Scammers create urgency by claiming multiple buyers are interested, pushing victims to pay quickly before verifying the vehicle or seller.
Signs of an Online Auto Sales Scam
To avoid falling victim to fraud, watch for these red flags:
The seller refuses to meet in person or allow an independent inspection of the vehicle.
The price seems too good to be true.
The seller claims they are in the military, moving, or facing an urgent situation that requires a quick sale.
Payment is requested through wire transfer, gift cards, cryptocurrency, or an unknown third-party payment service.
The vehicle’s history or title information is inconsistent when checked against official records.
How to Protect Yourself from Auto Sales Fraud
Verify the Seller – Ask for proof of ownership and check the seller’s contact information. Legitimate private sellers should have no issue verifying their identity.
Meet in Person – Always inspect the vehicle and test drive it before making a purchase.
Use Secure Payment Methods – Avoid paying upfront via wire transfer or gift cards; instead, opt for a bank-issued check or secure digital payment options.
Check the Vehicle History – Use reputable sources like CARFAX or the National Insurance Crime Bureau’s (NICB) VINCheck to confirm the vehicle hasn’t been stolen or involved in fraud.
Be Wary of Unusual Communication – If the seller only communicates via email or avoids phone conversations, it may be a scam.
What to Do If You’ve Been Targeted
If you suspect an online vehicle sales scam:
Report the fraud to the Wisconsin DMV and the Federal Trade Commission (FTC) by either giving them a call at (608) 266-3581 or sending them an email at opa.exec@dot.wi.gov.
Contact your bank immediately if you’ve made a payment to a fraudulent seller.
File a complaint with the Internet Crime Complaint Center (IC3) to help authorities track online fraudsters by going to www.ic3.gov.
Stay Vigilant Against Cyber Fraud
At Lake Ridge Bank, we’re committed to keeping our clients informed about the latest fraud and cybersecurity threats. Fraud protection starts with awareness, and by following these tips, you can stay one step ahead of scammers.
To learn more about this emerging form of fraud in our area, please follow the LINK to the Wisconsin Department of Transportation article for additional important tips and warning signs to help protect yourself when purchasing a car online.