Common attacks targeting car buyers
Why Car Buyers Are Prime Targets
Large transactions: $20K+ purchases attract scammers
Time pressure: Buyers rush due to financing deadlines
Complex process: Multiple parties create confusion
Personal info: Credit apps expose SSN, income, address
Fake Lender Email Scam
The setup: "Your loan is approved! Send $2,500 down payment to secure funding."
Red flags: Unsolicited approval, requests money upfront, poor grammar
Reality: Legitimate lenders never ask for money via email
Protection: Only work with lenders YOU contacted, verify by phone
Overpayment Check Scam
The setup: "I'll pay $5K extra, please wire the difference to my shipper."
Red flags: Overpayment, urgency, overseas shipping, wire transfers
Reality: Check bounces after you've sent the "extra" money
Protection: Never accept overpayment, verified funds only
Wire Fraud
The setup: "Last-minute change: wire your down payment to this new account."
Red flags: Changed wiring instructions, email requests, urgent timing
Reality: Criminals intercept emails and redirect payments
Protection: Verify ALL wire instructions by phone using known numbers
Red flags: urgency, gift cards, URL lookalikes
Universal Scam Warning Signs
🚨 Immediate Red Flags
- • Requests for gift cards or crypto
- • Pressure to "act now" or "limited time"
- • Unsolicited contact about loans/approvals
- • Grammar/spelling errors in professional emails
- • Requests to click links in emails
- • URLs that don't match the claimed company
⚠️ Proceed with Caution
- • Unusually low APR offers via email
- • Requests for SSN over email or text
- • "Guarantee approval" promises
- • Dealer asking for remote access to computer
- • Email addresses that don't match domain
- • Phone numbers that go to voicemail only
URL Spoofing Examples
Legitimate: chase.com, wellsfargo.com, bankofamerica.com
Fake: chase-bank.com, wellsfargo-auto.com, bankofamericaloans.com
Subtle fakes: chasė.com (foreign character), we11sfargo.com (1 instead of l)
Protection: Type URLs directly, bookmark legitimate sites, check for HTTPS
Verification drills
The Phone-Back Rule
Never trust the number in suspicious emails/texts
Look up the official number: Google the company, check your statements
Call and verify: "Did you just send me an email about [topic]?"
Ask for details: Legitimate companies can verify your account info
Two-Factor Authentication Setup
Enable 2FA on:
- • Bank accounts and credit cards
- • Email accounts (Gmail, Outlook)
- • Credit monitoring services
- • Loan servicer websites
- • Any account with financial data
2FA Options (Best to Worst):
- 1. Hardware keys (YubiKey)
- 2. Authenticator apps (Google, Authy)
- 3. SMS codes (better than nothing)
- 4. Email codes (weakest option)
Safer payments
In-Branch Transaction Benefits
Security cameras: Physical evidence of legitimate transactions
ID verification: Tellers verify identity and funds in real-time
Paper trail: Official bank receipts and documentation
Immediate confirmation: No waiting to see if funds clear
Safe Payment Methods (Ranked)
✅ Safest Options
- • Cash verified at bank branch
- • Cashier's check verified at issuing bank
- • Certified bank draft from buyer's bank
- • Wire transfer initiated from your bank
⚠️ Proceed with Caution
- • Money orders (easily counterfeited)
- • Personal checks (can bounce)
- • Zelle/Venmo between strangers
- • Cryptocurrency (irreversible)
❌ Never Accept
- • Gift cards or prepaid cards
- • "Overpayment" with refund request
- • Payment methods you're unfamiliar with
- • Any payment contingent on you sending money first
Escrow services for high-value deals
When to Use Escrow
High-value cars: Transactions over $30,000
Out-of-state deals: Can't meet in person
Collector vehicles: Rare or specialty cars
Mutual protection: Both buyer and seller want security
Legitimate Escrow Companies
Reputable Services
- • Escrow.com (most popular)
- • Cars.com Escrow Service
- • Local title companies
- • Attorney escrow accounts
Verification Steps
- • Check Better Business Bureau rating
- • Verify state licensing
- • Read customer reviews
- • Confirm insurance coverage
If you slipped up: freeze, report, recover
Immediate Action Checklist
First 30 minutes:
- • Contact your bank/credit card company immediately
- • Change all online banking passwords
- • Enable account alerts and notifications
- • Document what happened (screenshots, emails)
Credit Protection Steps
Freeze your credit: Contact all three bureaus (Experian, Equifax, TransUnion)
Place fraud alerts: 90-day initial alert, 7-year extended alert available
Monitor accounts: Check statements daily for unauthorized activity
Review credit reports: Look for new accounts you didn't open
Reporting Requirements
Bank fraud department: Report within 2 business days for maximum protection
FTC (IdentityTheft.gov): Official government reporting site
FBI IC3.gov: For internet-related crimes
Local police: File report for insurance/employer documentation
Recovery Process
Bank dispute process: Fill out affidavit, provide documentation
Federal protections: Regulation E limits liability for electronic transfers
Time limits: Report unauthorized transfers within 60 days
Keep records: Save all correspondence with banks and agencies
Dealer-specific scams
Fake Finance Office Emails
The scam: Email claiming to be from dealer's finance office with "updated payment instructions"
Red flags: Different account numbers, urgent timing, external email addresses
Reality: Criminals intercept dealer communications
Protection: Call the finance manager directly using the number from your contract
Verification Script for Changed Instructions
"Hi, this is [your name]. I just received an email about changed payment instructions for my car purchase. Can you verify:
- • Did your finance office send me an email today?
- • Are the payment instructions different from our original agreement?
- • What account should I actually send payment to?
- • Can you confirm these details match what's in my contract?
I want to make sure this is legitimate before I send any money."
Technology safety tips
Secure Browsing Practices
Safe Habits
- • Type URLs directly into browser
- • Bookmark legitimate bank websites
- • Look for HTTPS (lock icon)
- • Log out of financial sites completely
- • Use private/incognito mode on shared computers
Avoid These
- • Clicking links in emails
- • Downloading attachments from unknown senders
- • Using public Wi-Fi for banking
- • Saving passwords in browsers
- • Accessing accounts on shared computers
Frequently Asked Questions
Are cashier's checks safe?
Only if verified at the issuing bank. Fake cashier's checks are common in car scams. Never accept one without going to the bank branch together to verify.
What is a safe escrow service?
Escrow.com is the most reputable for car transactions. Avoid any escrow service suggested by the other party—scammers often create fake escrow sites.
How do I verify wiring instructions?
Call the recipient using a phone number you independently verified (not from the email). Ask them to verbally confirm the routing and account numbers.
What if a dealer emails me new payment info?
Never trust payment changes via email. Call the dealer's finance office using the number from your original contract to verify before sending any money.