Highlights
- Fake advertisements of used vehicles on lower prices are targeting victims on social media platforms
- The advertisements look so legitimate that anyone can fall a victim
- The ACCC estimates Australians lost $91 million to scams in 2020
Gurwinder Singh, who recently moved to Melbourne from Brisbane turned to Facebook Marketplace as he needed a pre-owned car for his daily commute to work.
Speaking to SBS Punjabi, the Tartneit resident said he bought a Suzuki Swift for $6,500 from the platform that connects sellers directly with potential customers in their area.
"I bought a Suzuki Swift car from Facebook Marketplace that I thought I was going to get in less than two days, but it never came," Mr Singh said.
The 33-year-old who works as an Uber driver said the scammer told him that she was selling the car on behalf of her aunt who works with the Air Force.
"The entire deal was made via email. Little did I know that I was being scammed."
Mr Singh said the advertisement seemed so legitimate that anyone could have fallen a victim.
“When I first emailed the seller, she asked me for an id to transfer the car in my name and also sent me the terms and conditions form with shipping details to make it seem like a real transaction," he said.
"I then proceeded to make the payment through eBay as she said she could not deal with me directly citing privacy reasons."
Mr Singh has become the latest victim of the fake used-car advertisements that lure victims on social media platforms and online classified sites by offering them vehicles at far lower than expected prices.
Gurwinder Singh, who recently moved to Melbourne from Brisbane turned to Facebook Marketplace as he needed a pre-owned car for his daily commute to work Source: Supplied
Figures supplied by the Australian Competition and Consumer Commission (ACCC) show that such scams were the second-highest form of fraud last year and witnessed a sharp rise amid coronavirus pandemic.
Tips for potential used-car buyers:
The ACCC estimates Australians lost nearly $91 million to scams in 2020 prompting the consumer watchdog to issue warnings over scammers who pose as genuine sellers and post fake ads on classifieds websites, in print classifieds, and may also approach unsuspecting buyers through email or on social media platforms.
They have the following protection advice:
- Don't rush into deals that seem too good to be true
- Be wary of purchasing a vehicle that you are unable to see
- Take time to verify the vehicle's details and location
- Avoid trading with people who want to make a sale outside of the auction process. If you do this, you lose any protections that the website operator offer to their users
- Avoid dealing with anyone who asks for payment via wire transfer
- Never send your personal, credit card or online account details through an email
Anyone who suspects they are a victim of such scam should act quickly to reduce the risk of financial loss or other damages.
For more information on scams, phishing, and how you can protect yourself online, visit Stay Smart Online – a program run by the Australia Cyber Security Centre (ACSC). To report scams, visit Scamwatch.
On its support page, Facebook has created a provision to enable users to report issues they encounter on Marketplace, including reporting a buyer or seller. Click here for more.
Click on the audio icon to listen to the full audio report.
