Navigating Online Marketplace Scams

We asked some of our buying experts about automotive scams and what they recommend to help remain safe and enjoy a smooth sale. While we are sales professionals, our advice comes from personal experience. If you have been scammed, it is important to contact local police and ScamWatch to rectify your individual situation.

With various scam tactics used to take advantage of car sales, we have identified three of the most common in online transactions. These involve:

• Money
• Information
• Physical theft

Money-related scams

In the case of money-related scams, fraudulent buyers will often attempt to deceive you by suggesting third-party transfers or claiming they transferred additional money that needs to be refunded. Whether suggesting you need to send funds to “activate” the third-party transfer service or providing a fraudulent transfer receipt,  scammers angling for cash will often make confusing claims, hoping to fool you.

Put simply, if the conversation regarding payment is becoming convoluted or feels suspicious, there’s a good chance you’re being set up. In most cases, if you accidentally send funds to a scammer, your bank will likely refund you the money. In situations where you have willingly handed over funds to a buyer, it is unlikely that your bank will recover your money. As a general rule, it is good practice to opt for cash or PayID payments in person at the sale site, allowing you to receive funds for your secondhand car in real time. 

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“PayID will never send you an email, text or message directly as your bank registers and manages PayIDs. If you get an email, text or message directly from ‘PayID’, it is a scam,” said NAB Executive, Group Investigations and Fraud, Chris Sheehan, per Drive.

Information-related scams

Information theft is also an option to be considered when selling privately. While there are various means of achieving this, the most common tend to flag themselves quickly:

• Some sellers may attempt to obtain a vehicle report through fake sites that collect your information
• Others try to direct you towards another messaging platform almost instantly

Our internal buying team at 1800 Car Buyers recommend that when dealing privately, it is crucial to obtain all information in writing, where you can secure the buyer’s details. However, mistakes can still happen. As a hypothetical, suppose you accidentally click through onto a link or hand over information to a suspicious buyer. Our team suggests:

• Cancelling and reordering all cards with your personal details (including Medicare)
• Changing all passwords to online accounts 

A thorough check of the potential buyer’s social media accounts is also an effective way to discern their intentions. If the account has been recently made, has no sign of activity, or is based away from where the sale occurs, it is a good idea to maintain a high degree of caution. Above all, if there is a feeling of uneasiness or suspicion, remember that you’re not obligated to engage, and it is fine to wait for a more secure buyer to reach out.

Physical theft

Finally, the most extreme case regarding vehicle scams is physical theft. While in-person inspections are a common component of most private sales, maintaining safety should always be your first priority. Our team of buying experts suggest:

• Meet in a public location (a fast-food car park or a shopping centre, for example)
• Take a photo of the enquirer’s driver’s licence and obtain their phone number before any test drive
• Once established, it is advised not to let the enquirer test drive your vehicle alone. If unavoidable, set a time when they will return with the car to your meeting point, and call 000 if they do not meet the deadline

These strategies are essential in minimising risk and potential harm when selling your car through an online marketplace or private sale. Exercising caution and trusting your instincts will often go a long way in ensuring a smooth and stress-free sale. However, companies such as 1800 Car Buyers provide a transparent and dependable solution, where you can easily sell a used car. Our service offers multiple confirmations across varying platforms and establishes a fair, firm price before collection, eliminating any stress at the collection point. Governed by LMCT regulations and informed by over 50 years of combined industry experience, our business prioritises a seamless and secure sale for Australians nationwide. We also deposit funds directly into bank accounts using Osko, an instant and safe method compatible with all major banking companies. Committed to delivering a quality service and reducing stigma surrounding online sales, 1800 Car Buyers will purchase any car in drivable condition.