Scammers go into overdrive

Whether you’re buying or selling a car, stay safe with these handy hints. If you’re using a vehicle classifieds site like Carsales, communicate with buyers and sellers only through the website’s messaging function.

Another tip is to avoid providing any personal details that could be used for identity theft – so don’t supply your licence details. And don’t release either the car or a “refund” into the hands of the buyer until you’ve seen the full payment in your account.

The Australian Competition and Consumer Commission (ACCC) reported in April that, over the year to date, scammers had ripped off unsuspecting buyers to the tune of $288,000.

A common con is a false listing and an asking price that’s below the market value. According to the ACCC, this type of scammer often claims to be a fly-in, fly-out worker or a member of the Australian Defence Force due to go overseas in the next few days. The scammer claims to be in a rush to sell, declines requests for inspections and refuses to speak to buyers on the phone.

The remote location excuse also works in scams aimed at sellers. A scammer tells the owner they will transfer payment to the owner’s bank or PayPal account. They then email the owner a fake receipt for more than the asking price, and demand the owner refund the overpayment.

Scams can be more than just money transfer, however. Buyers have been stuck with cars that have been reborn or written off interstate, so be aware, too, of what you might be buying if you don’t do your due diligence. And that includes checking for any financial encumbrance on the car you’re buying. You can do this by visiting revs.com.au and entering the vehicle registration number or VIN.

These are some of the tricks a scammer will use:

• won’t meet with you in person or speak with you on the phone – it’s all email or SMS

• claims to be located remotely and unable to inspect your car in person but still wants to buy it

• will only engage with you through a third party

• won’t negotiate with you and may even offer to pay more than the asking price

• will “overpay” into your account and issue a fake receipt for a “refund” from you

• will threaten you with legal action to scare you. In addition to notifying the website of a possible scam, you should also report it to the ACCC at scamwatch.gov. au or on 1300 302 502.