Buyer and Seller Beware! How Vehicle History Report Scams Work.
If you’re buying a used car, you want as much information about the vehicle as you can get – before you complete the deal. A vehicle history report is one of the best ways to learn about a vehicle’s history and it can tell you if the car’s been in an accident and other important information. If you’re selling a car, you’ll want a vehicle history report so you can negotiate the best price with prospective buyers.
Many sources for vehicle reports are legitimate, but with about 40 million used cars sold each year in the U.S., more than a few fraudsters are trying to get a piece of the action by using vehicle history reports to commit scams against both buyers and sellers.
In this article, we’ll look at what vehicle history reports are, different scams that target buyers and sellers, red flags to watch out for, and ways to stay safe.
What Is a Vehicle History Report?
A vehicle history report is a collection of records about a specific used car. This data, which you can get from a number of reputable companies, can help you make a more informed decision about whether to buy a vehicle and how much to pay.
The car’s VIN – or vehicle identification number – is the key to the vehicle history report. It’s like a Social Security number – it’s unique to one car. Any time a car has repair work done, is in an accident, has a claim made about it to an insurance company, or is sold, the VIN becomes part of each report, and that information is logged on any number of databases. Consumers can get vehicle history reports for a fee from various companies, including those approved by the National Motor Vehicle Title Information System.
A vehicle history report may include records of many different events that can affect the reliability and value of a used car, such as:
- Previous sales
- Repairs and inspections
- Mileage verifications
- Major accidents
- Safety recalls
- Thefts and recoveries
- Salvage or “lemon” title brandings
What’s not in the report? The vehicle history report won’t show the mechanical condition of the car or if certain parts are worn or need to be replaced. That’s why it’s a good idea to have a car inspected by a certified mechanic before a sale.
How Vehicle History Scams Work: If You’re Selling a Car
After listing your used car on a website or social media, you’ll get a call, text, or email from a buyer.
They say they really want your car – but first they want to see a vehicle history report.
That seems fair, except they want you to use a specific company – one you’ve never heard of. They’ll supply a link that might look official, but the website is bogus. You’ll share your credit card information, but you’ll never receive the report. Instead, you stand to lose more than the $20 fee you paid. Your personal identification information could be compromised, leading to identity theft. In some cases, the website link itself could be a scam and download malware to your computer when you click on it.
How Vehicle History Scams Work: If You’re Buying a Car
In this scam, you’ll see a car for sale online, somewhere in the neighborhood, or at a dealership. The seller says they’ll provide a vehicle history report that proves the car’s record is clean. But there may some issues with the report, including:
- It’s outdated and doesn’t show recent accidents or safety recalls.
- It’s been doctored to remove undesirable incidents.
- The report itself is legit, but the seller knowingly hides information about damage to the car that isn’t reflected in the report, often because the repairs didn’t involve an insurance company.
Watch Out for These Red Flags
When buying or selling a car, watch out for these red flags, which could be a sign that you’re being set up to be scammed.
- A buyer requires a vehicle history report from a specific website.
- You’re provided a link that ends in .vin – this top-level domain doesn’t relate to vehicle identification numbers, but it’s used by many scammers to look authentic.
- A seller gives you a printed or digital report and tries to convince you not to obtain a report yourself.
How You Can Protect Yourself
Now that you know what to look for, how can you protect yourself from a vehicle history report scam? Here are some tips for how to stay safe:
- Whether you’re a buyer or a seller, obtain a vehicle history report yourself, from a company you’ve found and researched.
- Go to vehiclehistory.gov for a list of Department of Justice-approved report companies.
- If you’re buying a car from a dealer you don’t know, check its reputation online.
- Have your mechanic inspect the used car you’re considering.
- Some buyers opt for a certified pre-owned vehicle for added protection and peace of mind.
What to Do if You’re a Victim of This Scam
If you’ve been targeted as part of a vehicle history report scam:
- Call your financial institution or credit card issuer immediately if you’ve sent a payment.
- If you’ve provided sensitive information like your driver’s license number, chat with an advisor at IDTheftCenter.org.
- Report the scam to the Federal Trade Commission at FTC.gov.
When buying or selling a car, it’s a good idea to play it safe and do your research before visiting an unfamiliar website or giving up your personal information. Remember these tips – and help make scammers history! To learn more about protecting your personal information or managing your finances, call us at (877) 773-6605.