Car scams: How to protect yourself
This essential guide will help you identify the red flags and tactics of common vehicle scams.
The excitement of a new car can quickly turn into a nightmare if you fall victim to a car scam. Fraudsters use various tactics to trap unsuspecting buyers and sellers, making it increasingly difficult for people to recognise what's genuine from what's fraudulent.
How to identify a scam
Car scams happen when dishonest people trick you out of your money and your car. They do it by pretending to be someone they aren’t, making up believable stories, then rushing you into a deal.
The good news is that if you can spot the tell-tale signs, you can stop the scammers.
Here’s a look at three ways car scammers work.
1. How they reach you
If you’re buying: They post cheap, great-looking cars on social media, buy-and-sell websites, or fake dealership sites. They might also send you random texts or WhatsApp messages with deals that look real.
If you’re selling: They’ll contact you (too) quickly about your ad. They often agree to your price straight away without trying to bargain. This is a big warning sign.
2. How they look real
Scammers work hard to make you trust them.
- They use nice photos of cars they don’t own.
- They send fake paperwork, such as fake bank receipts (proof of purchase) showing they paid you, or fake car history reports.
- They make up stories that seem like it could be real, for example saying the car is cheap because they’re moving overseas, or because it was taken back by the bank.
- They might ask for upfront fees, like a deposit to hold the car for you.
3. How they rush you
Scammers want you to act fast before you have time to think or check the details. They might tell you that other people want to buy it too or that the deal ends today. They might also push you into handing over the car keys before the money has reached your bank account.
Common scams to look out for when buying a car
| The ghost car: A great car is listed for a very low price. The seller asks for money upfront to hold the car or ship it to you before you can see it. Once you pay, they disappear. | Look out for: The seller refuses to meet in person, won't let you see the car first, and rushes you to pay. |
| Cloned or stolen cars: You buy a car that looks fine, but the paperwork is fake or the car was stolen. | Look out for: The paperwork looks messy, the seller wants to meet in a strange place, or the price is too cheap for that car. |
| Fake documents: The seller gives you fake service history books or fake safety certificates to make the car look well-cared for. | Look out for: The documents look home-made, have typos, or come from garages you can’t find. |
| The ‘out of town’ seller: The seller claims they are far away or overseas and asks you to pay to have the car delivered. | Look out for: They always have an excuse for why they can't meet you in person, and they demand bank transfers. |
| Auctioned and repossessed car scams: They pretend to sell cars that were taken back by the bank or police at very low prices. They demand holding fees or admin fees first. | Look out for: Unbelievably low prices and demands for upfront cash before you see the car. |
Common scams to look out for when selling a car
| False proof of payment (POP): A buyer pretends to pay you. They send you a fake bank SMS or proof of payment. They then ask to take the car immediately, saying the money will show in your account in a few hours. | Look out for: They’re in a hurry and want the car before the money is in your bank account. Never hand over a car until you log into your bank account and see the money there. |
| The accidental overpayment: The buyer “pays” more than the asking price and sends a fake proof of payment. They ask you to quickly refund the extra money. Later, their original payment bounces, and you lose the money you sent them. | Look out for: Anyone who accidentally pays you too much and asks for a quick refund. |
| Test drive theft: A buyer takes your car for a test drive and drives away with it. | Look out for: They insist on driving alone, want to meet in a quiet area, or ask too many questions about the car's alarm system. |
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Stolen bank details scam: A scammer hacks into your emails with a real buyer or seller. They send a new message pretending to be them, asking you to pay the money into a different bank account. |
Look out for: A sudden change in bank details, or email addresses that look slightly different. Always call the person to double-check bank details before sending money. |
A safeguard against fraud
To help steer clear of scams, use our checklist as a guide for smart buying and selling.
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Car scam prevention checklist Download the car scam prevention checklist to help identify potential scams. |
Banks and financial companies, especially those dealing with repossessed vehicles or outstanding finance, will have clear, secure rules. They will NEVER ask you to do any of the following:
- Make payments to a personal bank account for a settlement, release fee, or any other admin charge.
- Ask you to give your full banking details or personal information through random emails, text messages, or unexpected phone calls.
- Transfer money right now to someone’s account to speed things up.
- Share bank settlement letters or official legal documents with strangers, or with anyone claiming to act on behalf of someone else.
Always contact the bank directly to double check any requests.
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If you’re a Standard Bank customer and think you've been targeted by a scam, or that you’ve been the victim of fraud on your bank accounts, call the Standard Bank Fraud Line on 0800 222 050, or report fraud on your Banking App by:
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Disclaimer: This article is for information purposes only and does not constitute financial, tax or investment advice. Readers are strongly encouraged to seek financial or legal advice before making any decisions based on the content.
Standard Bank, its subsidiaries or holding company, any subsidiary of the holding company and all of its subsidiaries, make no warranties or representations (implied or expressed) as to the accuracy, completeness, or suitability of the content of this article. The use of the article and any reliance on the content is at the reader’s risk.
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