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An increasing number of Canadian car buyers turn to the web. Unfortunately, so do fraudsters.
Earlier this year, we reported that a fake U.S. dealership scammed five people north of the border and stole $200,000 from them. In fact, the RCMP's Canadian Anti-Fraud Centre catalogued more than 1,300 online car sale scams in 2012. However, it's just the tip of the iceberg.
Classifieds websites like Kijiji and Auto Trader are particularly targeted by fraudsters due to their huge popularity: As many as 600,000 of the 3 million used cars Canadians buy and sell annually trade hands via these websites.
One of the most common frauds involves advertizing a fake vehicle way below its market value. Potential buyers are asked to make a deposit through wire transfer, after which the seller vanishes with the money.
According to the RCMP, roughly 20% of online used car buyers or sellers encounter at least one instance of fraud while looking for, or looking to sell, a vehicle. Fraudsters and curbsiders may be continuing to target Canadians in part because of how relatively difficult it is for provincial regulatory bodies and authorities to convict and prosecute these criminals.
With hundreds of consumers being scammed every year, the Automobile Consumer Coalition is recommending regulators and websites to pursue new fraud detection technologies. Meanwhile, consumers are advised to remain alert at all times and shop carefully online.
Source : Automobile Consumer Coalition
Earlier this year, we reported that a fake U.S. dealership scammed five people north of the border and stole $200,000 from them. In fact, the RCMP's Canadian Anti-Fraud Centre catalogued more than 1,300 online car sale scams in 2012. However, it's just the tip of the iceberg.
Classifieds websites like Kijiji and Auto Trader are particularly targeted by fraudsters due to their huge popularity: As many as 600,000 of the 3 million used cars Canadians buy and sell annually trade hands via these websites.
One of the most common frauds involves advertizing a fake vehicle way below its market value. Potential buyers are asked to make a deposit through wire transfer, after which the seller vanishes with the money.
According to the RCMP, roughly 20% of online used car buyers or sellers encounter at least one instance of fraud while looking for, or looking to sell, a vehicle. Fraudsters and curbsiders may be continuing to target Canadians in part because of how relatively difficult it is for provincial regulatory bodies and authorities to convict and prosecute these criminals.
With hundreds of consumers being scammed every year, the Automobile Consumer Coalition is recommending regulators and websites to pursue new fraud detection technologies. Meanwhile, consumers are advised to remain alert at all times and shop carefully online.
Source : Automobile Consumer Coalition
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