Online payments don’t offer protection from used car fraudsters
HPI reports a growing number of buyers whose fingers have been burned by the ‘virtual car seller’ scam. Used car buyers mistakenly think that online payment systems, such as Google Wallet, will protect them if they get taken in by a fraudster. HPI warns consumers that any money transferred through to a dodgy seller using an online payment system, are not protected, even in the event that the car does not exist. Used car buyers should never purchase a vehicle online without seeing it and meeting the seller first, no matter what the payment method is, advises HPI.
The virtual car scam has been conning online buyers out of money for a number of years. Unsuspecting buyers are tempted by an advert on a motoring website from a UK seller offering a top-of-the-range car at a knock-down price. The seller will then usually claim to be based far away from the buyer, providing a reason why they cannot view the car there and then. Normally, the vendor says the vehicle is already being shipped to a location close to them, and that the low price is due to the need for a quick sale. Except there is no car, and the cash the buyer pays will be long gone by the time they realise they have been conned.
In a new twist on the scam, HPI has seen a number of buyers mistakenly believe they are protected if they use Google Wallet or another online payment system. But if the car they’ve purchased turns out to be dodgy; the money and the seller will be nowhere to be found.
Phil Peace, operations director for HPI comments, comments, “Online payments systems offer many protections, but these are designed to prevent fraudulent transactions. This is leading some consumers to believe that if they use a system like Google Wallet, they will be protected if they fall victim to a scam, such as the virtual car scam. These systems offer similar security measures offered by banks, designed to prevent your money being taken without your knowledge or consent.
“The problem is, if a buyer transfers money over to someone willingly, there is little that can be done about it. Online transactions are so fast and easy now, that by the time people realise they have been duped, the sellers are long gone, leaving the buyers with a fictitious car for their money.”
Anyone who buys a vehicle with a hidden history stands to lose the vehicle and the money they paid for it. If a vehicle turns out to be stolen, it could be returned to the rightful owner and it’s a similar story for cars on outstanding finance, which actually belongs to the lender. An HPI Check offers buyers unrivalled protection and will highlight any issues, helping them avoid the fraudsters.
The HPI Check includes a mileage check against the National Mileage Register as standard, now with over 160 million mileage readings. HPI also confirms whether a vehicle is currently recorded as stolen with the police, has outstanding finance against it or has been written-off, making it the best way for consumers to protect themselves from fraudsters looking to make a fast profit. In addition, the HPI Check offers a £40,000* Guarantee in the event of the information it provides being inaccurate, offering added financial peace of mind to used car buyers.
Phil Peace concludes, “Buyers would never walk up to a person selling a car on the street and give them thousands on the promise of a car, so why would they do this online? Electronic payments offer a false sense of security. All a criminal selling a fake car cares about is getting the money from the buyer, and then they disappear. Buyers need to be wary of online sellers and remember that seeing is believing. Never part with the money until you’ve seen the car and even then, get it checked.”