SAFE FROM SCAMS
You need to read this before you buy or sell anything online
Lt. Ray Collins is a busy guy. A very busy guy.
As a lead detective with the auto-theft task force of the Michigan State Police Department, Collins spends most of his workday trying to stay ahead of criminals by thinking like one. And that’s a job that never gets any easier.
About 70,000 vehicles are reported stolen in the Detroit metro area every year. And with modern technology becoming a thief’s best friend, prospective robbers are becoming more brazen and acutely resourceful in their schemes and efforts.
“Everything in auto theft seems to go in cycles,” said Collins, seemingly amazed at the complexity of the tricks of the trade. “They move from scam, to scam, to scam. As soon as we sort of get a grasp on one scam, they have moved to another.”
Collins said that computers and the Internet are the tools of choice for prospective car thieves. Whether it’s posting a misleading online classified ad, or producing a counterfeit car title to legitimize the sale of a stolen vehicle, criminals use technology to trick buyers and stay ahead of law enforcement.
In fact, according to the U.S. Internet Crime Complaint Center, consumer reports of shady vehicle sales increased 25 per cent last year and are expected to jump significantly again in 2013.
“This is a new generation of car thief, and both private sellers and buyers have to be very careful,” Collins said. “These scammers are very good at what they do, and they don’t care who gets hurt when they’re trying to pull a rip-off.”
And while Collins said most thieves try to avoid violence when it comes to pulling a vehicle scam or theft, there are exceptions. Violent carjackings – and even murder – are being reported after thieves set up a test drive for a private sale, take the owner along for the ride, then steal the vehicle by forcing them out the door, or worse.
“If you’re going to sell your car, you never meet anybody at your house. That’s just too big a risk nowadays. You might be getting set up for more than car theft,” Collins said. “Always meet somebody that wants to take a car for a test drive at the police station. That’s a sure-fire way to protect yourself.”
Collins also offered some other important guidelines when selling a vehicle: • If possible, bring a friend or family member along for the test drive, and make sure someone knows how long you expect to be gone. Carry your cell phone and keep it handy and visible throughout the trip. • Be wary of anyone who makes an offer to buy a vehicle sight-unseen. This is often a warning sign of a larger scam that involves transferring the title through a bad cheque or another fraudulent payment method. • Negotiate only with the specific person who is purchasing your car, and never with someone acting on the buyer’s behalf. And if willing to accept a cheque, complete the transaction at the buyer’s bank to ensure payment verification. And while it’s important for sellers to protect themselves, Collins warns that most of the complaints he investigates come from the buyers.
A wildly popular scam flooding into Collins’ office involves a stolen vehicle, a counterfeit title, and what appear to be a trustworthy seller and a safe meeting place.
Scammers will post a vehicle for sale on a website and invite prospective buyers to an apartment complex for a meeting and a test drive. Typically there’s a sob story about financial hardship as the reason why a quick sale and a cash payment are necessary, and why the selling price is well below book or market value.
The title – usually created with some nifty computer work – matches the vehicle-identification number and the apartment address where the meeting was set up, a transaction is made, and the two parties go their separate ways.
“Everything seems normal, the guy gives you a title for it, you give him cash for the car, you go to get the car titled, and it’s stolen,” Collins said. “You go back to the apartment complex and nobody has ever heard of this guy. What you weren’t paying any attention to is that they never walked out of the apartment. He walked out in between buildings or he came down the stairway.”
Collins offered these important tips when buying a car to avoid getting taken by a “curbstoner” scam: • Be wary of prices that seem too good to be true. Several websites, such as Edmonds.com, kellybluebook.com or NADAGuides.com, offer buyers a credible guide to vehicle pricing. The lower the price, the higher the probability of a sales scam, and the perfect warning to walk away. • Title washing is another popular sales scam that involves removing the word “salvaged” from the history of vehicles that have been wrecked and repaired. Spending a few bucks on a vehicle history report is often a telling and wise investment. • While the focus is on your personal safety, don’t forget the basics of the transaction. If you’re buying, thoroughly test the vehicle in broad daylight, also making sure to test the lights.
“There are no guarantees when buying or selling a vehicle,” Collins said. “But try not to negotiate alone, use the Internet as a tool, and if something doesn’t feel right, there are plenty of other cars for sale out there to choose from.”