THE increase in online car scams this year comes as people seek cheaper vehicles for pandemic-related reasons.

Scammers, posing as potential customers, obtained photos and information on vehicles from car dealerships and post discounted prices online to woo buyers looking for cheap deals, heads of vehicles associations said when explaining how the scams work.

Kuala Lumpur and Selangor Car Dealers and Credit Companies Association vice president Lee Puay Loong said scammers are taking advantage as auto dealers are enjoying good sales volume.

Fears of catching Covid-19 while using public transportation and the impact of movement-control orders on their finances, are among some of the reasons for good sales.

“The sales volume for auto dealers is quite high during this period. Customers are inclined to look for cheap vehicles to ease their financial burden,” Lee told The Malaysian Insight. 

Vehicle sales are also helped by the sales tax exemption that the government announced last year as part of a Covid-19 economic stimulus package. The exemption has been extended until June 30.

Federation of Motor and Credit Companies Associations of Malaysia deputy president Teh Seng Hap said several car dealers in Negri Sembilan have been targeted by scammers since the end of last year. 

Scammers pose as customers and go to car dealers to enquire about a purchase. 

They take photos of the car to “show their family members” and then upload the photos to social media claiming to be salespersons or shareholders of the car dealership, said Teh.

“To the potential buyer, they pretend to be a middleman and bring the would-be buyer to the dealership to see the car and even test-drive it.”

Once scammers get the potential buyer hooked, they pressure the buyer to pay a deposit immediately to secure a cheap deal.

“The scammer takes the victim to the bank to withdraw the deposit, still posing as a middleman for the car dealership. They take the victim’s money, make an excuse and then disappear,” said Teh.

Most of these cases happen with second-hand car dealers who rely on introduction by an intermediary to facilitate transactions for potential customers.

“Experienced car dealers will not easily trust unfamiliar middlemen, but some car dealers who are relatively inexperienced and eager for money are easily deceived,” added Teh.

Bernama reported a warning by the federal police earlier this month that online car sale scams jumped 94.5% in the first five months of this year, compared to the same period last year.

From January to May this year, police reported 461 victims scammed from online car sales, involving the loss of over RM5.4 million.

This is compared to 237 victims who were cheated of RM1.4 million in the corresponding period last year. 

For the whole of 2020, there were 678 victims who were cheated of RM5.9 million. 

In 2019, there were 553 victims who were scammed of a total RM3.2 million.

Police said scammers would advertise cheap car deals on social media with false claims that the cars are imported from Thailand and Singapore, and are cheap because they are tax-free or are confiscated vehicles. 

Lee said scammers are able to convince gullible people that these cars can still be on the road legally.

“They make you feel confident enough to pay the deposit. Some even uses the name and address of existing car dealerships to gain your trust.”

Despite the spike in cases, Lee said online car scams have been active since five years ago.

Lee’s car dealership had the unfortunate experience of being misused by scammers in 2016, resulting in three victims who were cheated of their deposits.

“From this experience, I learnt that scammers used a well-known local e-commerce platform, when I myself had never posted anything about the car on offer on that website.

“I did not find out until the victims told me. I reported the crime and although my dealership did not lose any money, the company’s reputation suffered.”

Gerakan Public Services and Complaints Bureau chief Henry Teoh said the bureau has so far not received complaints about online car scams this year. 

But Teoh personally knows someone who nearly fell prey last year.

“A friend from Kampar, Perak, saw a car he liked on the internet and asked me whether it was worth buying. 

“It was from a range of Mercedes cars with prices from RM40,000 to around RM70,000. I told him the dealer will disappear once he pays the deposit and my friend dismisses the idea of buying it.

“Generally, if the car price is lower than the market price, it is a scam. People must not be greedy,” said Teoh.

DAP Federal Territory Public Complaints Bureau chief Yew Jia Haur said he handled online car scam cases in 2019.

“One victim found a ‘seller’ on an e-commerce platform. The seller or scammer had stolen information from a genuine dealership. After the victim sent the money, there was no further news, and when he checked, he found that he had been scammed.

“I hope that people will be more vigilant. No matter how attractive the online discounts are, they must insist on paying the deposit only after seeing the car at the dealership.”

Lee added that scammers liked to use Facebook, as they can continue leaving comments under a post to create the impression that their offer is genuine or that a sale was successful.

Lee said buyers interested in a cheap deal should cross-check the car model online and also with other car dealers as part of their “homework”, before paying any deposit.

To avoid repeated scams and protect car dealers and the public, Lee’s association launched a Malaysian car trading platform called EZ AUTO last year, an online portal with professional car inspection functions, one-stop trading, bidding pricing and after-sales service. – June 21, 2021.