TN AG Division of Consumer Affairs Warns of Car Dealership Impersonators

TN AG Division of Consumer Affairs Warns of Car Dealership Impersonators

The Tennessee Attorney General's Office is warning consumers about scam websites posing as legitimate classic car and heavy equipment dealerships. These scams often involve sophisticated websites advertising vehicles or heavy machinery at extremely low prices. Fraudsters may go to great lengths to appear legitimate-answering phone calls, sending videos, and even providing fake business licenses. But consumers who send money will ultimately lose it because the vehicles or equipment do not exist.

"Too many of us know firsthand what it's like to see bad actors scam family members out of their hard-earned money," said Tennessee Attorney General Jonathan Skrmetti. "These scammers don't care one bit about your family's financial well-being. Consumers should always be cautious when shopping online-especially when purchasing high-value items like vehicles or heavy equipment."

The Attorney General's Office recommends that consumers inspect vehicles or equipment in person before making a purchase. If that is not possible, consumers should take additional precautions to verify the seller's legitimacy.

• Be cautious of deals that seem too good to be true: Scammers often lure victims by advertising high-value vehicles or machinery at extremely low prices.
• Use third-party inspections: If you cannot inspect the item in person, arrange for a neutral third party-such as an independent mechanic-to inspect it before sending payment. Paying for an inspection could prevent the loss of thousands of dollars.
• Research the business: Check reviews, ratings, and complaints about the seller. Consumers can consult the website of the Better Business Bureau for business profiles and complaint histories. Vehicle history reports can also be obtained through services such as CARFAX, AutoCheck, or the National Motor Vehicle Title Information System. Some scammers copy business names or addresses from legitimate businesses that are no longer in operation. To check a business's good standing, you can use the Tennessee Secretary of State's business entity search tool: https://tncab.tnsos.gov/business-entity-search.
• Protect your financial information: Avoid wiring money or sending bank-to-bank transfers when purchasing from unfamiliar sellers. These payment methods are favored by scammers because funds are extremely difficult to recover once sent. Instead, use secure payment methods such as a check or credit card when possible.
• Keep personal information private: Be wary of websites that request sensitive personal information, such as a Social Security number. Legitimate sellers rarely require this information during an online purchase. Avoid any seller that requests payment exclusively through gift cards, cryptocurrency, or money transfer services like Western Union or MoneyGram.

Consumers impacted by this scam should immediately report to the FBI Internet Crime Complaint Center (IC3): https://www.ic3.gov/.

Fraudulent business activity can also be reported to the Attorney General's Office using the online consumer complaint form found at www.tn.gov/consumer and the Better Business Bureau at www.bbb.org/file-a complaint.

Consumers are also encouraged to stay informed about current scams by signing up for alerts from the Federal Trade Commission: https://www.ftc.gov/news-events/stay-connected.

###