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Front Page February 13, 2009  RSS feed

Kilgore resident loses in Internet auto sales scam

A Kilgore man lost $6,000 in an online automobile scam this week and police are warning everyone to beware of doing business on the Internet.

Lt. Roman Roberson, Kilgore Police Department public information officer, said the Kilgoreite believed he was purchasing a vehicle listed on www.AutoTrader.com. He contacted the seller by e-mail and learned the car "was supposedly located in Ohio."

The buyer was instructed to send $3,000 via MoneyGram to an alleged Yahoo agent in order to hold the funds in escrow, Roberson explained.

"The victim was further instructed to MoneyGram an additional $3,000 to the Yahoo agent to complete the transaction and shipping of the vehicle would be arranged," he said. "The vehicle was never shipped and after the money was sent and subsequently picked up, the seller failed to respond to any further e-mails from the victim. The victim's total loss was $6,000."

Roberson said chances are good the seller doesn't even live in the United States.

"The vehicle in this case was probably being sold by another legitimate party and the photographs were simply copied to the fraudulent ad. In this case, the vehicle was reportedly in Ohio but one could observe palm trees in the background," Roberson said.

"There are many variations of these scams. Unfortunately local law enforcement has limited ability to investigate due to the overseas connections. Most of the perpetrators of these scams are located in other countries. This type scam is most prevalent in Eastern European countries."

Roberson said these type scams are becoming more common on some of the popular online auto selling sites, including AutoTrader, Craigslist and eBay.

Here are some suggestions to help protect you when buying a vehicle online:

— Never wire money through Western Union or MoneyGram for payment of any online goods or services. Legitimate escrow services use banks to transfer money. Most sellers will offer several payment options.

— Yahoo does not have representatives who collect money acting as escrow agents.

— Never use any services recommended by the seller.

— Legitimate escrow services do not ask you to fax payment confirmation receipts.

— Be suspicious if the vehicle is priced way below market value. If it looks too good to be true, it probably is.

— Check out the wording in any e-mail correspondence from the seller. If the e-mail is from a fraudulent seller they are usually from a foreign country and the wording of the e-mail will be in broken English.

— Be aware if they offer free shipping. Shipping cars is expensive and not something that is usually thrown into the deal for free.

— Web sites and e-mails can be made to look authentic.

— Most of the internet vehicle selling sites offer a lot of good information and tips on how to protect you from fraud. It is definitely worth taking the time to read.

— Auto Trader, eBay and Yahoo do not inspect or guarantee any of their listed vehicles.


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