Fraud Prevention Tips

Never send money before you have seen the vehicle in person.

To make their story sound convincing, scammers may:

• Ask you to purchase a vehicle history report from a provider other than CARFAX.
• Claim they are buying or selling on behalf of someone else and give reasons why they cannot meet in person.
• Pressure you to act quickly.
• Ask you to move the conversation to email, WhatsApp, Telegram, or another platform.
• Send links to unknown websites for payments, vehicle checks, or identity verification.
• Refuse phone calls and only want to communicate by email or text.
• Offer a deal that seems too good to be true.

If you notice one or more of these warning signs, be very careful.

How to Protect Yourself

• Never send money before seeing the vehicle.
• Do not click links from unknown buyers or sellers.
• Meet in person and inspect the vehicle.
• Arrange the meeting in a busy, well-lit public place equipped with security cameras, and consider bringing a friend with you.
• Before a test drive, inspect the buyer’s driver’s license and confirm that they have valid insurance coverage.
• Use trusted payment methods and keep records of transactions.
• Trust your instincts. If something feels wrong, stop the transaction.

Common Scams

Fake Vehicle Report Requests

Be cautious if a buyer asks you to purchase a vehicle history report from a specific website other than CARFAX before proceeding with the transaction.

Trader has a partnership with CARFAX, a trusted company specializing in vehicle history reports.

Example:

“I’ll buy your car, but first please get me this specific report from this website that I shared with you.”

What to do:

Do not pay for reports requested by strangers. Buyers should obtain any reports they need themselves.

Sellers can purchase a CARFAX report directly through AutoTrader when posting an ad.

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Deposit or Advance Payment Scams

A seller asks for a deposit before you can view the vehicle.

Example:

“Send a deposit today or you’ll lose the deal.”

What to do:

Avoid sending money before inspecting the vehicle and confirming the seller is legitimate.

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Overpayment Scams

A buyer sends more money than agreed upon and asks you to refund the difference.

Example:

“I accidentally sent $5,000 instead of $4,000. Please send the extra $1,000 back to me.”

What to do:

Do not refund money until payments are fully verified and cleared.

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Identity and Phishing Scams

Someone sends links or requests personal information.

Example:

“Verify your account here” or “Enter your banking details to receive payment.”

What to do:

Never share passwords, verification codes, banking credentials, or sensitive personal information.

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Vehicle Not as Described

The vehicle description, condition, ownership, or history does not match reality.

Example:

A vehicle is advertised as accident-free but has undisclosed damage.

What to do:

Inspect the vehicle carefully and obtain an independent vehicle history report before purchasing.

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If You Suspect Fraud

• Stop communicating with the person.
• Do not send money or personal information.
• Report the suspicious activity to us here.
• Report the incident to your local police department, financial institution, and the Canadian Anti-Fraud Centre.
• Keep copies of messages, emails, and transaction records.

When in doubt, walk away. A legitimate buyer or seller will understand reasonable safety precautions.