NICB Warns of Widespread Craigslist Auto Sales Scam
Corvette Purchased with Phony Bank Check in Craigslist Scam via @insurancecrime Tweet
Working with law enforcement agencies in the Chicago area and across the Midwest, NICB has identified nearly 100 instances of sales of vehicles that went sour when phony bank checks were used to pay for the vehicle.
“These scams are well organized and have all the appearances of being legitimate,” said NICB President and CEO Joe Wehrle. “But in the end, the criminal gets the car and the sellers or their financial institutions are left on the hook for thousands of dollars still owed on the car.”
Such was the case with Mike and Christy Childers of Elizabethtown, Ky., who sold their 2010 Corvette on Craigslist, only to learn that the check that their bank initially said was valid, was actually bogus. Fortunately, quick action by law enforcement agencies in Kentucky and Illinois, with assistance from NICB, led to the recovery of the Corvette after it had been picked up, driven to Chicago, and listed for sale again on Craigslist.
For the full story, watch this video.
Unfortunately, some online car sales lead to much more serious results, as witnessed by the alleged murder of a Missouri man this week as he met a buyer that had seen his car for sale on Craigslist.
NICB advises anyone trying to sell or buy a vehicle on Craigslist to follow their very specific guidelines which can be found here https://www.craigslist.org/about/scams.
Any face to face meetings should take place at a location that is highly public, preferably at a police station.
Scammers are particularly active in states where the vehicle owner retains the title even though there is an outstanding lien. They will pressure sellers to sign over the title and give them what appears to be a valid bank or cashier’s check to pay for the vehicle. Never sign over a title until you have the money in hand. Avoid accepting any kind of check, but if you do, take the time to make sure any alleged bank or cashier’s check has actually cleared and you have the cash. It may take a week to 10 days for a check to clear. If it’s bogus, you could be left responsible for paying off the loan even though the car is long gone.
Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800-TEL-NICB (800-835-6422), texting keyword “fraud” to TIP411 (847411) or submitting a form on our website. Or, download the NICB Fraud Tips app on your iPhone or Android device.
About the National Insurance Crime Bureau: headquartered in Des Plaines, Ill., the NICB is the nation's leading not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through data analytics, investigations, training, legislative advocacy and public awareness. The NICB is supported by more than 1,100 property and casualty insurance companies and self-insured organizations. NICB member companies wrote $371 billion in insurance premiums in 2013, or more than 78 percent of the nation's property/casualty insurance. That includes more than 93 percent ($168 billion) of the nation's personal auto insurance. To learn more visit www.nicb.org.