The fear of being scammed at an online car auction is a genuine one, but the truth is, they are a rarity nowadays. This is due to the fact that online auction websites work to a high security standard. But for peace of mind keep an eye on a few things.

The example

You buy a relatively new car at an online auction paying just about $8000, getting a great deal. But as weeks go by you realize that your money is gone and the car has and never will be delivered. The signs are you have been scammed.

The procedure

Online buyers are the targets of auction car scammers. They go to the extent of cloning auction sites with the best safety record in order to pull off their shady deals.

In the previous case of the $8000 scam, the buyer bid at an auction on eBay. The scammers simply get the user’s email address, send a fake notification that the buyer’s bid was the winning one and collect the payment, without there actually being a car. Upon further inspection, eBay never made the notification that it always does if you are the highest bidder.

Scammers usually set up bank accounts that they close as soon as the payment is made and they can withdraw the funds. This way any option for the buyer to get their money back is eliminated.

There are many cases of online scams

With the rise of online buying and selling, frauds also become more common. But there are ways of protecting yourself. There are ways of searching for online scams and there are websites listing details about scams and providing advice on how to stay safe when buying online.

Clues

The first tip that a website might be a fake one is the broken English used on the site as many of these fraudulent websites operate from abroad.

The second clue is an escrow account that the seller want you to send the money to. These are usually bank accounts operated by scammers that are closed as soon as the money is received and withdrawn.
If anything on the website you are buying the car on raises a red flag or any suspicion, do not complete the purchase.

Avoiding online car scams

If the offer you see online is a bit too good to be true it usually is, so follow the six-step list to avoid being the victim of a scam.

-    Call the seller and verify the information. If you have any doubts, stay clear.
-    Do research on the escrow company.
-    Keep your personal info to yourself.
-    Visit the website of the escrow company, check for signs of fraud.
-    Never pay to escrow company online as legitimate escrow companies never ask for that.
-    Domains like .biz, .org, .us, or .info are usually used by scammers operating abroad.

Conclusion

When buying a car online never give out your personal information and always use verified sites. The safest way is to use a proxy bidder.