Beware of Fake Auto Dealer Scams

Law enforcement agencies nationwide are warning consumers about a growing auto fraud scheme targeting car buyers online. Scammers are posing as legitimate dealerships and luring buyers with attractive vehicle listings—often for cars that don’t actually exist.

These fraudsters create convincing websites or social media pages using stolen photos and copied listings from trusted platforms like Carfax, Edmunds, or Facebook Marketplace. The goal is to pressure buyers into sending payment—typically through irreversible methods such as wire transfers—before ever seeing the vehicle. Once the money is sent, the “dealer” disappears.

Warning Signs to Watch For

Be cautious if you notice any of the following:

• Prices that seem too good to be true
• Limited, low-quality, or stock photos
• Typos, inconsistencies, or mismatched details
• Refusal to allow an in-person inspection
• Requests for wire transfers, cryptocurrency, or gift cards
• High-pressure claims that another buyer is “ready to purchase”
• No verifiable physical address
• Suspicious or incomplete website URLs that mimic real dealerships

How to Protect Yourself

If you’re considering buying a vehicle online, take these steps before sending any money:

• Inspect the vehicle in person whenever possible, or use a trusted third party such as a local mechanic
• Verify the seller’s identity and confirm you’re communicating with the actual dealership
• Search the dealer’s phone number and business name for complaints or fraud reports
• Check the address using Google Maps to confirm it’s a legitimate dealership location
• Avoid payment methods that offer no protection or recourse
• Request the VIN and run an independent vehicle history report

If You Think You’ve Been Scammed

Act quickly and report the incident to:

• The Federal Trade Commission at ReportFraud.ftc.gov
• Your State Attorney General or Consumer Protection Office
• The Better Business Bureau

We’re Here to Help

At Universal 1 Credit Union, your financial well-being comes first. If you have questions or want a second set of eyes before making a purchase, our dedicated Member Services team is ready to assist. You can send us a chat message, schedule an appointment, email, or give us a call.

Schedule an Appointment
memberservices@u1cu.org | 800-762-9555, option 0

View our hours and locations here.

When in doubt, reach out—we’re always happy to help you protect what matters most.

Disclosure:
This article is provided for informational and educational purposes only and is not intended as legal or financial advice. Fraud tactics and scams may change over time. Universal 1 Credit Union does not guarantee the accuracy or completeness of third-party information referenced and is not responsible for losses resulting from fraudulent activity. Members are encouraged to use caution when purchasing vehicles online and to contact Universal 1 Credit Union for guidance before sending funds or sharing personal information. 

TruStage "Risk Alert Actionable insights for bond policyholders" Accessed, Tuesday, Februaru 3, https://www.trustage.com/-/media/cunamutual/business-protection/risk-management/risk-alerts/public/2026/20260129_watch_ra_fakedealers.pdf