October 1 , 2020 The Beacon • 49
WatWatch out for new scams
Auto shipper and
Social distancing guidelines during the COVID-19 pandemic have fueled an unprecedented shift to online shopping for consumer goods of all kinds including vehicles , with particularly high demand for recreational vehicles .
Many online platforms list cars , trucks , vans and RVs for very low prices with sellers offering to make third-party delivery arrangements if the buyer pays via escrow . In reality neither the automobile nor the escrow company exists , leaving the buyer without their money or their vehicle .
An in-depth investigative study by Better Business Bureau finds thousands of consumers have fallen victim to this scam with losses totaling millions of dollars . The study , “ Virtual Vehicle Vendor Scams : BBB Study Reveals a Growing Scam Using Fake Cars and Escrow Companies to Steal from Unwitting Consumers ,” points to a heightened risk from this scam as demand increases for online vehicle purchases . Read the full study at www . bbb . org / fakevehicles .
According to the study , websites such as Craigslist are rife with advertisements for low-price vehicles with seemingly eager sellers often claiming the reduced price is because of an upcoming military deployment overseas , a divorce or the death of a family member to whom the vehicle belonged .
Victims are directed to pay a supposedly independent third party , typically by wire transfer , to hold money in escrow and ship the vehicle . However , no vehicle is ever delivered .
“ Buying a vehicle online from a reputable seller can be a safe and convenient way to shop during COVID-19 , but as with any high-profile situation , scammers are finding ways to take advantage of unwitting buyers ,” said Frank Cilona , president of the Better Business Bureau . “ Consumers should use extreme caution so as not to let a low price and a sad story lure them into paying for a
Submitted
Many online platforms list cars , trucks , vans and RVs for very low prices with sellers offering to make third-party delivery arrangements if the buyer pays via escrow .
vehicle that does not exist .”
Scammers sometimes claim the transaction is protected by the eBay vehicle protection program . In other cases they invent bogus websites connected to shipping escrow companies with addresses in towns across the U . S ., particularly the Midwest . Those sometimes use the names and addresses of real businesses or car dealerships .
Available data suggests fake online vehicle sales are increasing , but the scope of this fraud can be difficult to gauge because many lawenforcement agencies do not track it as a separate complaint category .
The Internet Crime Complaint Center has reported receiving tens of thousands of vehicle escrow scam reports with losses in the tens of millions . Criminal cases likewise reflect millions of dollars in losses . BBB receives hundreds of BBB Scam Tracker reports annually about fake vehicle shippers and escrow companies with 41 % of victims reporting they lost money .
A Branson , Missouri man found an RV advertised in a free local newspaper in May 2018 . After calling the number in the ad and leaving a message , he received a text message telling him to communicate with the seller ’ s aunt , who could not talk by phone .
The “ aunt ,” who claimed to have received the vehicle in a divorce settlement , sent a link with interior photos and invoiced the man by email . She said he could not inspect the RV in person before buying but told him Missouri Auto Shippers in Springfield , Missouri would handle the transaction , holding his payment in escrow for seven days so he could return the RV if he wasn ’ t happy .
The invoice instructed the man to send the money within two hours . When he went to the bank to wire payment , his banker informed him the money appeared to be going to California . The man called Missouri Auto Shippers to point out the wiring discrepancy , upon which the “ shipper ” hung up on him .
Major investigations and prosecutions in New York , Kentucky and Europe have connected this fraud to Romanian nationals and others living in the U . S ., Romania and elsewhere in Europe .
In the most recent U . S . case , the Secret Service and the Kentucky State Police led an organized crime prosecution that charged 20 people with a reported $ 1.8 million in victim funds converted to bitcoin and transferred to Romania .
Fifteen defendants have pleaded guilty , three are fugitives and two others are scheduled to go to trial in fall 2020 . Romanian law enforcement provided key support in the case .
BBB recommends law-enforcement efforts to battle this fraud continue or increase . Coordi-
See SCAM Page 51
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