A RESURGENCE of the used car scam online has prompted car dealers to issue warnings to potential buyers, advising them to be cautious of offers that significantly undercut the market price.

Dealer Simon Tham stated that if the price is lower by more than half of the market value, it’s likely a scam.

“Don’t be fooled by the bargain; it could lead to financial loss,” said Tham.

Police data revealed that from January to May of this year, 818 cases of bogus online car sales were reported, resulting in losses of RM9.7 million.

Andrew Kok, a dealer in Seremban, told The Malaysian Insight scammers had used his dealership’s signboard and address to create fake websites.

Kok said 20 cases were falsely connected to his company this year.

The victims reported losses ranging from RM500 to RM8,000.

Scammers previously operated on various platforms, favouring online shopping sites. However, as these sites bolstered security, scammers have shifted to a popular social media site—Facebook—to find targets.

Kok advised car buyers to only pay the deposit into a company account, ensuring that a money trail in case of fraud.

Another car dealer, Sun Wong said his dealership was falsely linked to at least eight scams.

Victims reported losing RM500 to RM5,000 in deposit payments for cars.

Wong said scammers, posing as customers had visited his showroom to take pictures to use on fraudulent websites.

“They also asked many questions about the used cars on display.”

Wong noted that those who verified the company’s existence and website legitimacy were spared from losing their money.

Tham, the Seremban dealer, urged buyers to take their time and avoid rushing into transactions.

“Don’t rush to pay the deposit. See and inspect the car first,” he said.

“Remember, these scammers are slick and they are trained to talk you into parting with your money.”

Tham said scammers pressure the victims into paying by claiming other people are also interested in the vehicle.

“Their goal is to secure a partial payment from the buyers.”

Tham said buyers must not make any payments until they have viewed the car in person.

In some cases, scammers direct victims to fictitious addresses.

Commercial Crimes Investigation Department director Ramli Mohamed Yoosuf said police recorded 309 cases of online used car scams in 2021 and 1,336 cases in the previous year.

Losses were estimated at around RM4.43 million in 2021 and RM12.88 million in the preceding year.

He urged the public to be careful vigilance when purchasing cars on social media and e-commerce platforms. – August 12, 2023.