AI powering digital car scams
Used car buyers need to be more vigilant as digital sales scams increase.
South Africa has a very healthy, well-traded used-car market. Although newvehicle pricing has made it more affordable for many buyers to buy a new car rather than a used one, the majority of South Africans are still used-car buyers. And in the used-car buying space, browsing and buying are increasingly digital, which has increased the risk of cyber fraud.
According to the South African Police Service, 147,149 commercial crime cases were officially recorded in the country between April 2025 and March 2026, representing a 2.5 % overall annual increase in commercial and fraud crimes. The Global Anti-Scam Alliance reported that its 2026 study found that 85 % of participants in South Africa had encountered a scam in the past year.
Knowing the AI risks
Compounding the problem in the retail automotive space is the rapid proliferation of artificial intelligence( AI) tools. Scammers are now leveraging generative AI and digital manipulation software to produce realistic vehicle listings, official-looking dealership and banking identities, and even clone voice and video messages, making online vehicle fraud harder to detect than ever before.
" Generative AI has made it easier for fraudsters," says Thembinkosi Pantsi, Vice- Chairperson of NADA. " In the past, poor grammar, blurry images, or inconsistent branding were easily noticeable red flags. Today, scammers are using AI to instantly generate legitimate-looking advertisements, complete with convincing email and social media profiles. What looks like an unbeatable deal online can now quickly turn into a devastating financial loss."
What should buyers be wary of? There are several indicators that the promise of a dream used-car deal is exactly that: just a dream. And too good to be true; therefore, an online used-car sales scam.
A popular used-car cyber fraud tactic is the bypassed bank auction. Repossessed cars can’ t be secured before auction, for a promised‘ upfront holding fee’. An accredited finance house disposing of a repossessed vehicle does not transact through a private messaging app either. Another obvious sign of an online used-car sales scam is the‘ holding deposit’. Accredited online sales platforms and dealers do not allow holding deposits.
By far the most telling response indicating an online used-car scam is refusal of in-person viewing. While AI can generate convincing photos or pre-recorded videos, scammers will consistently make excuses to avoid an in-person viewing at a verifiable physical location.
WORDS IN ACTION 8 SEPTEMBER 2026