As online marketplaces like Facebook Marketplace continue to flourish, used-car sellers in South Africa face an escalating threat from scammers. The South African Police Service (SAPS) has issued a warning regarding prevalent car deposit scams that exploit the vulnerabilities of sellers seeking to cash in on their vehicles.
What Is a Car Deposit Scam?
A car deposit scam occurs when an individual, masquerading as a genuine buyer, offers to pay a deposit to “secure” the car before anyone else can make a claim on it. Sellers, eager to close the deal, often let their guard down when the buyer appears trustworthy. During a test drive, the scammer may request the keys, assuring the seller that the full payment will be completed soon.
Unfortunately, once the scammer has the vehicle, they vanish, leaving the seller with nothing to show for their efforts. This scenario has become increasingly common, with many sellers falling victim to these deceptive tactics.
Other Scamming Techniques to Watch Out For
According to Auto Pedigree, various scams target those selling used cars:
● Test Drive Theft: Scammers may take a vehicle for a test drive and simply drive off, leaving the seller without their car.
● Fake Proof of Payment: A scammer might provide fraudulent evidence of a deposit, allowing them to take the car while the seller waits for payment that never arrives.
● Overpayment Requests: Scammers may send a counterfeit cheque indicating they mistakenly overpaid for the car, asking for a refund on the excess amount, which ultimately leaves the seller without payment.
● Home Visits for Theft: Some scammers might visit a seller’s home under the pretense of viewing the car, only to return later for theft.
● Finder’s Fee Ruse: Scammers often call sellers, claiming to have interested buyers but requesting a “finder’s fee” to facilitate the sale. Once paid, the scammer disappears.
Why Scams Are on the Rise
The increase in scams targeting car sellers can be linked to various factors. The ease with which individuals can create fake identities online, a growing number of online platforms for buying and selling, and insufficient law enforcement in this area all contribute to the problem. Additionally, many sellers are in desperate need of money, making them more susceptible to fraudulent schemes.
Safeguarding Against Scams
To protect yourself when selling a used car, it is essential to conduct thorough checks on potential buyers and remain cautious of offers that seem too enticing. Always ensure that payment is confirmed before handing over the vehicle or its keys.
By remaining informed and vigilant, sellers can navigate the dangers associated with online car sales and protect their financial interests.
