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SEARCHThe Point Predictive study traced a pattern across more than 100 websites it believes are being developed by an international theft ring.
At least some of the fake auto dealer websites have appeared and disappeared within the space of two weeks, Point Predictive found.
Pexels/Sora Shimazaki
New research has found more than 100 bogus auto dealer websites created by scammers who are making away with consumer funds.
The study by lending data and risk-management provider Point Predictive found that more than 100 such websites were created to impersonate auto dealers and have taken tens of thousands of dollars from consumers in single incidents.
The sites are “selling” luxury and muscle cars, tractors and heavy equipment that Point Predictive said don’t exist. The firm said two different victims lost $45,000 and $37,000, respectively.
“This is not a handful of isolated scams. It is a coordinated fraud operation called ‘dealer cloning’ that is sweeping across the country,” the firm said in its report.
The research uncovered what Point Predictive believes is an international fraud ring that uses stolen inventory photos of vehicles posted for below-market prices on sites “that look completely legitimate.”
The fraud operation comes as affordability pressures make buying vehicles a stretch for many consumers, some of whom may be attracted by offers they think could save them money.
Consumers who’ve fallen for the scheme wire money for their purchases but don’t receive the vehicles, Point Predictive said.
“By the time they realize the site is fake, the money is gone and the website has vanished.”
The fraudsters are using artificial intelligence and website templates to multiply their efforts, according to the firm, which said all of the bogus sites follow the same pattern, the only difference being the site name and logo.
“On the car side, you see names like K&J Auto Sales, Exovian Drive, and Horizon Car Sales,” Point Predictive said. “But behind every name is the same operation.”
The sites can be built and disappear in a matter of just two weeks, the firm said. Access its full report on the operation here.
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