Rising online vehicle sale fraud prompts warning from Wisconsin DMV

(WFRV) – The Wisconsin Department of Transportation (WisDOT) Division of Motor Vehicles (DMV) is warning the public about an increase in online vehicle sale fraud.

According to a press release from WisDOT, a trend in the number of scams by vehicle sellers posing as car dealers online is on the rise.

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“The fraud scheme starts online as a fake storefront,” DMV Dealer and Agent Section Chief Maura Schifalacqua explained. “An individual creates a website or a social media profile claiming to be a Wisconsin dealership. Stock images or photos of real vehicles and real Wisconsin dealerships are included to make the website seem legitimate. However, there is nothing legitimate about it. The advertised vehicles may be listed at below market value causing interested consumers to take the bait.”

WisDOT recommends taking the following precautions:

  • Watch for numerous spelling or grammatical errors on the seller’s website or manipulated photos of a business or vehicle. This could tip you off to a cloned dealer site or an unprofessional (and possibly unscrupulous) dealer.
  • Research the dealership ahead of time including verifying phone number, address, email, and other contact information.
  • Review WisDOT’s active dealers list to verify licensed dealers, wisconsindmv.gov/dealerlist. The list includes motor vehicle dealers and motorcycle dealers who are properly licensed to sell. This list is updated daily and readily available to the public.
  • Review vehicle purchasing information on WisDOT’s website.
  • Visually inspect the vehicle before buying and inspect the required Wisconsin Buyer’s Guide.
  • Ensure the selling dealer uses a Motor Vehicle Purchase Contract as required by Wisconsin law.
  • Refrain from sending money by purchasing gift cards or other suspicious payment methods encouraged by the seller.
  • If you wish to make a wire transfer to the seller’s bank, independently verify the bank’s contact information. You may inform the bank you wish to verify the legitimacy of the seller before sending a wire transfer.
  • If something doesn’t feel right, walk away from the purchase.

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WisDOT also provided the following tips for any consumers who have fallen victim to this scam:

The DMV’s Dealer and Agent Section’s Field Investigation Unit says they took on 1,259 consumer complaints in 2024. They also report that $1.7 million were returned to car buyers.

For more information, visit wisconsindmv.gov.