Navigating the online marketplace for a used car can be exciting, but it’s also fraught with potential pitfalls. One scam that continues to trap unsuspecting buyers involves the supposed “eBay Car Protection Program.” Imagine finding a fantastic deal on Facebook Marketplace or Craigslist, only to be told by the seller that the transaction is secured by eBay’s Buyer Protection. Sounds reassuring, right? Unfortunately, this is a classic scam tactic, and understanding the truth can save you from losing your hard-earned money.
The Scam: Fake eBay Protection on Other Platforms
The scenario often unfolds like this: you express interest in a car advertised outside of eBay, perhaps on Facebook Marketplace or Craigslist. The “seller” then introduces the idea of using the “eBay Buyer Protection Program” to ensure a safe transaction. They might even send you fake invoices that appear to be from eBay Motors, instructing you to send payment, often through gift cards. This is precisely what happened to Sandra R. Wright, a Facebook user who contacted a consumer advocate after encountering such a situation. These scammers are leveraging the reputable name of eBay to build trust and trick buyers into sending money for vehicles they will never receive.
The Federal Trade Commission (FTC) has issued warnings about these fraudulent schemes. According to Colleen Tressler, a consumer education specialist at the FTC, criminals are posting ads for cars they don’t own on various online platforms. They lure buyers with attractive prices and then falsely claim the transaction is protected by eBay’s program. These scammers are adept at online communication, sharing photos, and answering questions, making the scam seem legitimate until it’s too late.
The Real eBay Vehicle Purchase Protection
It’s crucial to understand that eBay does offer a Vehicle Purchase Protection program. This legitimate program can protect buyers up to $50,000 (or the vehicle’s purchase price, whichever is lower). However, and this is the critical point: this protection ONLY applies to vehicles purchased directly through the eBay platform. It does not extend to transactions initiated or conducted on other websites like Facebook Marketplace, Craigslist, or any other classifieds site.
eBay itself explicitly warns against these scams on their eBay Motors Security Center page. They state clearly that if a seller on Craigslist or any non-eBay platform promises eBay protection, it is almost certainly a scam, and you should immediately cease communication and walk away from the deal.
How to Spot the Scam: Red Flags to Watch For
The Better Business Bureau (BBB) identifies this type of fraud as an “escrow scam.” Here are key warning signs to help you recognize and avoid these scams:
- Unrealistically Low Prices: The vehicle is advertised at a price significantly below market value. This is a common tactic to lure in buyers quickly.
- Excuses for Low Price and Urgency: Sellers often create stories to justify the low price and pressure you to act fast, such as deploying overseas, divorce, or a deceased relative who owned the car.
- Refusal to Meet in Person: The seller will avoid meeting in person and will not allow you to inspect the vehicle before purchase. They may use excuses about location or shipping.
- Fake Vehicle Photos: Scammers often use photos stolen from legitimate online ads. A reverse image search on Google Images can often reveal if the photos are stolen.
- Claims of eBay or Third-Party Protection on Non-eBay Sites: This is the biggest red flag. If a seller outside of eBay promises eBay protection, it’s a scam.
- Requests for Unusual Payment Methods: Scammers often demand payment via gift cards, wire transfers, or third-party escrow services that are actually controlled by the scammer. These methods are difficult to trace and offer no buyer protection.
Why This Scam Works: The Escrow Deception
These scams are often referred to as escrow scams because they involve a fake third party that is supposed to hold funds securely until the transaction is complete. In reality, the “escrow service” is part of the scam, and the money is immediately funneled to the criminals. Investigations have indicated that many of these scams are linked to organized crime groups, with some tracing back to Romania. While authorities have made arrests and recovered some losses, this type of scam persists.
Conclusion: Protect Yourself from Online Car Scams
The promise of an “eBay Car Protection Program” for vehicles sold outside of eBay is a clear indication of a scam. Always be skeptical of deals that seem too good to be true, especially when combined with pressure to act quickly and unusual payment requests. Remember, eBay’s Vehicle Purchase Protection is a legitimate program, but it is exclusively for purchases made directly on eBay. When buying a car online, especially from platforms other than reputable dealerships or established marketplaces like eBay, proceed with extreme caution. If a seller mentions “eBay protection” outside of eBay, it’s time to walk away and report the suspicious activity. Protect yourself by staying informed and vigilant in the online car marketplace.
