Key takeaways

Do not pay for a vehicle you have not seen, by wire transfer, gift card, or a payment route the seller chose. Do not return the difference on an overpayment check.

  • The FTC says scammers post ads for cheap used cars they do not own, and that gift card or wire transfer payment requests are a sign of a scam.
  • The FTC warns scammers are cloning real car dealership websites, sometimes using AI, and advises walking away from any dealer who requires an upfront payment by wire transfer only.
  • Scamwatch reported 346 vehicle scam reports and $288,459 in losses in the first quarter of 2021, more than all losses reported in 2019, and over 1,000 reports and more than $1 million lost in 2020.

Got a name, website, or phone number from the sender or seller? Check the scam directory.

How vehicle listing scams work

Vehicle scams have two sides. On the buying side, a scammer lists a car they do not own, often at a price well below market, on a site such as Facebook Marketplace or a classifieds service. Scamwatch’s 2021 alert names sites like Facebook Marketplace, Autotrader, Car Sales, Cars Guide, and Gumtree. The scammer asks for payment to “secure” the car, then never delivers it. The FTC describes the same setup on online sales sites: a chat, some photos, and sometimes a fake invoice demanding gift cards, plus “shipping” or “transportation” costs after the sale.

Scamwatch found a new tactic in 2021: in 97 percent of that year’s reports at the time, the seller claimed to be in the military or the Department of Defence and said they were selling before deployment. That story creates urgency and explains the low price and why buyers cannot inspect the car first. Fake Defence email addresses were used, such as ones ending @airforce-raaf.org and @royal-australian-defence-gov.com, and Scamwatch notes that correct-looking formats do not prove legitimacy because addresses can be spoofed.

A newer buyer-side scam clones real dealers. The FTC’s alert from September 2026 says scammers copy a legitimate dealer’s website, including logos, listings, and photos, and sometimes add fake customer testimonials. They often advertise rare or hard-to-find vehicles such as classic muscle cars, explain the buying process in detail, and offer flexible return policies to build trust. Then they ask for an upfront payment by wire transfer only.

On the selling side, the FTC’s February 2025 alert describes a “buyer” who says they live elsewhere and cannot inspect the car. They send a check for more than the asking price, claim an accidental overpayment, and ask you to send back the difference. The check may appear to clear, but the bank can take weeks to detect the fraud and will then reclaim the funds, leaving you to repay the bank for money you sent. See marketplace overpayment scams.

Eight warning signs

  1. A price far below market, with a story to explain it. Scamwatch advises suspicion of prices that seem too good to be true. The reasons given are typically a sudden move or, in the 2021 reports, a military deployment.
  2. The seller cannot meet or let you inspect the car. Scamwatch advises inspecting the vehicle before paying and being wary of sellers who are unavailable, travelling, or moving. The FTC advises an independent mechanic check.
  3. Payment by gift card or wire transfer. The FTC says gift card or wire transfer requests are a scam sign, including fake invoices demanding eBay gift cards. See gift card scams and bank transfer scams.
  4. Payment to “secure” the car through an escrow agent or third party. Scamwatch says scammers often request payment through an escrow agent, eBay, direct bank transfer, or international money transfer. If you want an escrow service, choose it yourself and check it independently.
  5. Extra fees for “shipping” or “transportation” after you agree. The FTC lists unexpected shipping and transportation costs after the sale as a warning sign.
  6. A dealer website you cannot match to a real, visitable dealership. The FTC says scammers clone real dealers’ websites and may add fake testimonials. Search the dealer’s name with “scam”, “review”, or “complaint”, and ask to see the car and dealership in person.
  7. A vehicle history report that does not match the listing. The FTC recommends a vehicle history report, starting at vehiclehistory.gov, which shows free details on title and odometer. A VIN mismatch can reveal a problem.
  8. A “buyer” whose check is for more than you asked. The FTC says that if someone sends a check for more than the selling price and asks you to send money back, it is a scam. Never send money to someone who says they overpaid.

Three ways it plays out

These are composite scenarios built from the sources. Figures come from the cited alerts.

The deployed seller

  1. A car is listed far under market value. The seller writes that they are in the military and have to sell before deployment.
  2. They say you cannot view the car, but will arrange delivery once you pay a deposit to “secure” it, perhaps through an escrow agent.
  3. Their email address looks official. Scamwatch’s examples include addresses ending @airforce-raaf.org.

Scamwatch says this story appeared in 97 percent of vehicle scam reports in early 2021. Over 80 percent of reporters avoided losing money by spotting the scam early. Asking to see the car is the quickest test.

The cloned dealer

  1. You find a rare classic car on a dealer site that looks professional, with testimonials and a flexible return policy.
  2. The “dealer” explains each step in detail and says the car can be reserved by wire transfer.

The FTC says to search the dealer’s name with “scam” or “complaint”, to ask to see the car and dealership in person, and to request a mobile inspection if the car is far away. It advises walking away if the dealer requires an upfront payment by wire transfer only.

The overpaying buyer

  1. You list your car. A “buyer” says they live elsewhere and will send a check; they cannot inspect it.
  2. The check arrives for more than your price, with an apology and a request to send back the difference.
  3. You deposit it. The money appears in your account and you send the difference. Weeks later the bank reverses the check.

The FTC’s advice: do not accept a check for more than the selling price and never send money to someone who says they overpaid. A balance showing in your account is not proof the check is good.

How to check a vehicle listing before paying

  1. Search the seller’s name, phone number, and email with the word “scam”. The FTC notes bad reviews are a warning sign.
  2. Get a vehicle history report. The FTC suggests starting at vehiclehistory.gov, which gives free details on title, latest odometer reading, and condition. Paid reports add accident and repair history.
  3. Pay an independent mechanic of your choice to inspect the car, even if the seller says it is certified. The FTC recommends this, and treats a refusal to allow an independent inspection as a red flag.
  4. For dealer sales in the United States, ask to see the Buyers Guide, which shows whether the car has a warranty or is sold “as is”. The FTC says dealers must display it on used cars. It also says that for online sales, dealers must let you cancel and get a prompt refund if the car does not ship on time.
  5. Do not pay until you have seen the car and the paperwork. Avoid wire transfers, gift cards, money orders, and escrow services that the seller names.
  6. Do not hand over copies of your driver’s licence or other ID to someone you have only met online. Scamwatch says about 20 percent of people who reported vehicle scams gave away personal details.

If you already paid or gave details

If you paid or shared documents, move quickly. These steps follow Scamwatch’s and the FTC’s advice.

  1. Call your bank immediately. Scamwatch advises contacting your bank straight away, cutting off contact with the seller, and informing the platform where you found the listing.
  2. If you paid by wire, gift card, or crypto, contact the provider at once. The FTC explains steps by payment method on its what to do if you were scammed page.
  3. If you deposited an overpayment check and sent money back, tell your bank and explain what happened. The bank may reclaim the funds from your account.
  4. If you shared ID, contact IDCARE (1800 595 160) in Australia and New Zealand for free support, or your national identity support service. Replace documents if needed.
  5. Do not pay to “get your money back”. See recovery scams.
  6. Keep the car listing, messages, and bank records until your complaint is resolved.

How to report it, step by step

  1. Screenshot the listing before it disappears, including the price, photos, location, and the seller’s profile.
  2. Record the details: the seller’s name, phone, email, website, bank account or payment details, the VIN (if given), and every payment.
  3. Report the listing to the platform where you saw it.
  4. File with your national agency from the list below. The FTC asks people to report suspected scams, dishonest dealers, and cloned dealer websites at ReportFraud.ftc.gov, and to also tell their state attorney general about dishonest dealers.
  5. Report cybercrime in Australia to ReportCyber if the scammer is believed to be in Australia, as Scamwatch advises.
  6. Tell your bank the report reference so the claim can be linked.

Where to report

More help from official sources

The Scamwatch figures are from 2019 to early 2021 and are given as reported at that time. Rules such as the Buyers Guide apply to dealer sales in the United States. Scambaba is an independent educational project. Reporting and recovery options depend on where you live. How these guides are researched is on the editorial policy.

Frequently asked questions

How do I know a used car listing is fake?

Check the price, the seller, and the photos. The FTC says scammers post ads for cheap used cars they do not own, and warns of pressure to hurry, no in-person meeting or inspection, and gift card or wire transfer payments. Scamwatch adds sellers who are unavailable or travelling, and who demand payment before a meeting.

Is it safe to use an escrow service?

Be careful. Scamwatch lists escrow agents among the payment routes scammers request. The FTC suggests an escrow or online payment service as one option when selling a car online. Choose the service yourself, verify it independently, and never use one the other person names.

A buyer sent me a check for more than my asking price. What do I do?

Do not send any money back. The FTC says to not accept a check for more than the selling price, and that if someone asks you to send the difference, it is a scam. The bank can take weeks to detect a fake check and will then reclaim the funds from you.

How can I check a dealer website is real?

The FTC says scammers clone real dealers’ sites, sometimes using AI, and may add fake testimonials. Search the dealer’s name with “scam” or “complaint”, do not rely on positive reviews alone, ask to see the car and the dealership in person, and walk away if the dealer requires upfront payment by wire transfer only.

Do I need a vehicle history report?

The FTC recommends one. It suggests starting at vehiclehistory.gov for free details on title, latest odometer reading, and condition. It also recommends an independent mechanic inspection even if the seller says the car is certified.

Why do scammers claim to be in the military?

Scamwatch found this claim in 97 percent of vehicle scam reports in early 2021. It creates urgency, explains the low price, and explains why you cannot inspect the car first. Fake Defence email addresses were used, and Scamwatch says correct-looking addresses can be spoofed.

I already sent a deposit. Can I get it back?

Contact your bank immediately, cut off contact with the seller, and report to the platform and the national agency. Recovery depends on how you paid. Wire transfers, gift cards, and crypto are hard to reverse, and anyone offering to recover the money for a fee is likely to be another scammer.