Warning to South Africans buying a car online

WesBank warned South Africans about a rise in online car auction scams where fraudsters pose as official sellers, only to disappear with the buyer’s money.

The bank explained that these scams are particularly prevalent on social media platforms like TikTok. “These fraudsters are preying on unsuspecting customers hoping to snag a bargain in the automotive retail space,” WesBank said.

“These sophisticated scammers create convincing fake accounts that use WesBank branding, purporting to be official representatives selling bank auction vehicles.”

These scammers lure unsuspecting buyers with deals that seem irresistible. They then pressure them to pay over large sums of money to “secure” what appears to be an auction-listed vehicle.

“However, once the payment is made, the scammers quickly close their fake accounts and vanish with the customer’s money, leaving their victims with no recourse,” WesBank said.

This is part of a wave of online scams which are circulating at the moment. Similarly, marketplace scams are also becoming more common and sophisticated.

Capitec’s executive of market and communications, Francois Viviers, told Daily Investor that fraudsters are exploiting online platforms.

He explained that marketplace scams occur when fraudsters use online platforms, such as Facebook Marketplace or Gumtree, where goods or services are bought and sold.

“These scams often involve fake listings, counterfeit items, or sellers who demand upfront payment for goods that are never delivered,” he explained.

Viviers said courier scams are also on the rise. This type of fraud is also similar to car auction and marketplace scams, and involves consumers paying for goods that are never delivered.

“Online shopping and second-hand trading can be convenient and cost-effective, but they also require vigilance,” he noted. “A cautious approach can help consumers steer clear of fraudulent sellers.”

How South Africans can avoid vehicle auction scams

WesBank explained that there are some key things South Africans can look out for to avoid fraud when participating in an online auction.

First, registration is mandatory for any legitimate auction, and a refundable deposit is usually required upon registration.

However, a genuine auction will never ask for a deposit to “secure” a specific vehicle before the auction begins. “If you’re asked for such a deposit, it’s a major red flag,” the bank warned.

Buyers should also familiarise themselves with the auction’s terms and conditions, including payment procedures, refund policies, and buyer responsibilities. “Knowing these guidelines will help you more easily identify and avoid scams,” it said.

WesBank also stressed that shoppers should beware of offers that seem too good to be true.

“Be vigilant against potential scams, especially on online platforms. Always ensure you’re dealing with a reputable auction house and an authorised representative,” WesBank said. “As the saying goes, if an offer seems ‘too good to be true’, it probably is.”

WesBank’s head of marketing and communication, Lebo Gaoaketse, explained the importance of dealing with trusted sources.

“Always ensure that you are dealing with a registered auction house, and in the case of a bank auction, an official bank representative,” Gaoaketse said.

“Do not be enticed into accepting unofficial offers. It is often a ploy to defraud those looking for a good deal. Trust your instincts and proceed with caution. It’s better to err on the side of caution than to fall victim to a fraud scheme.”

WesBank added that South Africans should also be vigilant for common warning signs, such as:

• Sellers requesting payment outside of the official auction platform
• Reluctance to provide additional information or photos of the vehicle
• Vague or inconsistent product descriptions

“We urge participants to report any suspicious activity promptly to the auction platform to prevent others from falling prey to scams and contribute to a safer online marketplace,” Gaoaketse said.

“By taking note of these guidelines and exercising caution, buyers can confidently navigate vehicle auctions, maximising their chances of securing a quality vehicle at a reasonable price.”