You could lose thousands to this online car-buying scam

OK, most people who are shopping for a car online probably aren't going to expect to run into this money-grabbing scam.

So here goes: There's a risk that you might run into a bogus car dealership website that is designed to trick buyers into sending money upfront, typically by wire transfer, according to a new alert from the Federal Trade Commission.

That's right. Scammers are now cloning some car dealership websites. Why not? They impersonate everything else.

It's a good warning to keep in your glove compartment — especially if you love a big V-8 engine and classic car culture.

Right now, these fake sites appear to focus primarily on dealerships that sell a variety of used cars, including classic and collector cars. But there's a concern that scammers could expand their horizons.

The FTC notes that unwitting car buyers can send thousands of dollars, show up at a real dealership, and then sadly discover that the legitimate dealer has no record of their order or payment.

The crooks cloned "a real auto dealer’s website — often using AI to do so — copying the brand logos, vehicle listings and photos down to the last detail," according to the FTC.

"Some websites even include fake customer testimonials."

It's a scam you don't spot every day

It's a sophisticated fraud scheme, according to consumer watchdogs, that can involve spoofed online ads. In some cases, the con artists will steal listings for cars for sale that appear on trusted platforms like Carfax, Edmunds and Facebook Marketplace, according to alerts posted online by credit unions warning their members.

What could make this scam tricky is that it's not one like the toll road scam or the unpaid tickets scam that many people are running into rather frequently. You might not be aware enough to spot a cautionary flashing light.

At this point, many big auto dealers say they aren't seeing signs of the scam, according to industry experts.

The National Automobile Dealers Association, the voice of franchised new-car dealerships, told the Detroit Free Press, part of the USA TODAY Network, that NADA has not received reports from dealers about this particular scam.

"In general, these kinds of scams have two victims: the consumer who may lose money and the legitimate dealership whose name and reputation are being misused," said Enrique Gutierrez, a spokesperson for the National Automobile Dealers Association.

He said NADA encourages consumers to follow the FTC’s guidance.

"Walk away if a 'dealer' insists on an upfront payment by wire transfer only," Gutierrez said.

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One consumer reported losing $32,900 for car built in the 1930s

While this scam might not be widespread, federal regulators say authorities are seeing an uptick with individual consumers reporting losing big money in 2026.

A driver in California sent $32,900 by wire transfer for a 1932 model car spotted online. The promise was that the car would be shipped. "I found out after the fact that this car was listed on several websites for sale," the consumer reported in March on the BBB Scam Tracker.

The car never did arrive.

This summer, an odd scam apparently started with antique or classic vehicles advertised for sale on TikTok. Interested buyers were then directed to a website that appeared to be impersonating an established company known as Todd's Toys in Hixson, Tennessee, according to a Better Business Bureau alert.

The BBB determined that the photographs for cars displayed on the website matched those already used by a reputable automobile dealership in Dothan, Alabama.

Law enforcement is seeing an uptick in fake auto dealer sites

The FTC has received reports from consumers across the country about scammers who are impersonating auto dealerships, according to FTC spokesperson Juliana Gruenwald Henderson.

Henderson told the Detroit Free Press that the FTC's state law enforcement partners reached out to the FTC in August after noticing an uptick in fake auto dealer websites.

The owner of an auto dealership in Indiana, for example, told a law enforcement partner that consumers had lost more than $70,000 to a fake website impersonating his business, the FTC's Henderson said.

"The FTC has gotten reports of scammers impersonating legitimate auto dealers for some time, but we believe artificial intelligence has made it easier for scammers to quickly spin up fake auto dealer websites and clone a real auto dealer’s website," she said.

The FTC does not have an aggregate estimate of the total reported losses.

Most payments appear to be made upfront by wire transfer, according to the FTC.

"Once a consumer sends a wire transfer, it’s nearly impossible for them to get their money back. Scammers know this and that’s precisely why they insist on wire transfers," Henderson said.

The FTC recommends that before you send any money, check out the dealer’s reputation online. If it checks out, ask to see the car, and the dealership, in person.

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A picture can fool you into thinking a deal is real

I tracked down various complaints posted by consumers online. One theme came through loud and clear: Don't believe someone has the car on hand simply because they've got a picture of a great looking car or truck.

One savvy consumer who did not lose money reported an online car sale scam where a 2019 Lexus LX 570 with only 7,000 miles was up for sale at an "incredibly low" price. The site even had Carfax information. But the consumer searched Google with the provided vehicle identification number and discovered that the full-size SUV was previously sold on another website at a significantly higher price, according to a report made on the BBB Scam Tracker.

Another consumer in Michigan reported via the BBB Scam Tracker that they spotted a website that offered "highly restored used cars at unbelievably low prices," but further research indicated that the company did not appear to be a legitimate business.

As with other fake websites, including those involving rental scams, the crooks steal photos that had been posted online earlier by others and then claim to somehow be involved with selling that particular car, home or even something as precious as a pet.

Rental scams, for example, often featured the outside of a house, someone else's house, which ended up being used to scam people out of ID and a security deposit.

The crooks behind the fake dealership websites want to steal money by taking a deposit for the car. But you won't see a car or your money again.

More ways to trick buyers into paying for non-existent cars

Consumers need to be aware that fraudsters are cloning legitimate car dealership websites to trick buyers into paying for non-existent cars, according to Erin Lomax, vice president of operations for consumer marketplaces at Cox Automotive, the parent company of Autotrader, Kelley Blue Book and the website platform, which supports more than 60% of auto dealerships websites nationwide.

Autotrader posted an alert in June warning that scammers are using artificial intelligence to quickly create spoofs of legitimate dealership websites — complete with photos, videos, official logos and attractive prices.

Many times, fraudulent sites will go so far as to advertise 14-day buy-back guarantees and warranties, too. Some legitimate dealers offer something similar, but experts suggest that consumers be wary if these guarantees appear along with other red flags.

But you really want to take a step back, according to an Autotrader alert, if a “trust kit” is offered.

Often, these “trust kits” contain falsified documents such as VIN verification, dealership credentials and vehicle photos. The kits are sent to buyers in advance of payment to give buyers a false sense of security that everything is on the up and up.

Generative AI also means that scammers easily build a list of vehicle inventory much like a legitimate site. Some fake websites include video testimonials from fictional characters.

Lomax said Cox Automotive is not seeing or hearing about spoofed sites in significant numbers. Even so, she said, Cox Automotive performance managers regularly coach dealership website clients on best practices and content strategies to help them mitigate fraud activity.

One major red flag: Sellers on the fake sites will pressure buyers into sending quick deposits or wire transfers under a false sense of urgency, maybe suggesting that the car has a lot of interested potential buyers.

Another potential scam: Study what the seller is promising — and see if that matches what a legitimate seller would do.

Cox Automotive, for example, warns some scammers are promoting fake Kelley Blue Book escrow and buyer protection programs.

The reality is that Kelley Blue Book does not sell, buy, ship, or warehouse vehicles. "KBB has explicitly warned that any 'escrow-based consumer-to-consumer service' or 'Buyer & Seller Protection Program' offered under its name is entirely a scam utilizing imitation websites," according to a statement from Cox Automotive.

Beware of fake warehousing and shipping services being offered, too. "If a seller requests a deposit or payment for a car supposedly stored in an Autotrader or KBB warehouse, or claims that Autotrader 'guarantees' the transaction, it is a scam," according to Cox Automotive.

"Neither company owns physical vehicle warehouses or offers vehicle shipping services."

Some of the red flags associated with these deals are similar to those in other scams:

Is this a deal that's too good to be true? Is the price way too low for what looks like an attractive, low-mileage car?Why can't you kick the tires? Scammers will give you an odd reason for why you cannot inspect the car in person. "If the car is too far for you to visit in person, tell the dealer you want to hire a mobile inspection service to check out the car. If they won’t let you, consider taking your business somewhere else," the FTC alert can you suddenly afford a rare muscle car or hard-to-find classic? Another deal too good to be true?Why would they demand Bitcoin? Or a wire transfer? Crooks want to easily get your money without you being able to get it back. Steer clear of anyone who demands that you pay for a car or truck via wire transfer, Zelle payments, cryptocurrency or gift cards. Consider using a reputable escrow service for the money so the payment is not released until the vehicle is tip: Double-check information that you might spot on Autotrader or other sites, which scammers also impersonate online. "If you find a dealer listing on Autotrader, cross-check their physical location, independent reviews on sites like the Better Business Bureau, and call them directly using a number you find independently, not the number on a suspicious listing," according to Cox taking a test drive. Never buy a car sight unseen. Cox Automotive notes that buyers can minimize risk by handling transactions through specialized secure frameworks like the Autotrader Private Seller Exchange (PSX), which vets the identity of both parties, provides vehicle history context, and securely escrows the funds.

Contact personal finance columnist Susan Tompor: stompor@. Follow her on X @tompor.