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How to avoid falling for fake auction scams
Check out these straightforward, simple, and practical tips to avoid falling for fake auction scams and only buy from auction houses known for their security and transparency with customers.
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Learn what a fake auction scam is and how to avoid falling for one.
In times of accessible vehicle auctions, there is a very common fear surrounding this type of business: falling victim to a fake auction scam.
We've shown many times how difficult it is to buy a car these days.
With a shortage of parts, a high dollar exchange rate, and a sluggish economy, vehicle prices continue to rise.
Thus, buying a car, whether a brand new model or a used or nearly new one, has become an arduous task.
In this way, vehicle auctions became popular.
The popularization of auctions is a very positive thing; however, care and caution are necessary.
That's because, unfortunately, with the growth of this type of business, scams in the area have also increased.
Today, auction houses that operate safely and efficiently rely on a range of security measures to protect their clients.
But unfortunately, there are still many malicious people who perpetrate the infamous fake auction scam.
And that's exactly what we're going to talk about today.
The experts at Senhor Carros are big supporters of vehicle auctions.
But we don't want to see anyone fall for the fake auction scam.
Therefore, in today's article we're going to talk all about how to avoid falling for fake auction scams.
In other words, you'll discover what this scam is, what to do if you've been scammed, and most importantly:
Here are some important tips to protect yourself from this type of fraud.
Want to buy your car at auction, but in a safe and functional way?
So, reading today's article is a must!
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Tips for saving money and ensuring safety at auctions.
Check out these 8 tips to save money and ensure a safe purchase at vehicle auctions, so you can get a great deal!
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What is a fake auction scam?
Today there are many car auction websites, which unfortunately makes it easier for scams to be carried out.
However, with a high level of information available, fewer and fewer people are falling for the fake auction scam.
The fake auction scam is carried out through fake websites.
These websites are built by criminals, where expensive vehicles are typically sold for prices FAR below market value.
Following this line of thought, in order to gain credibility, criminals provide a range of information about vehicle documentation. But that's not all.
It is common for these websites to disclose information such as the condition of the item, as well as other benefits, such as facilitated payment options, for example.
All these points presented by the criminals are aimed at attracting more and more victims.
Using a fake website, the auction scam is carried out in a manner similar to a genuine auction.
The cars are put up for online or virtual auctions so that customers can place their bids.
At the end of the auction, the customer who made the highest bid wins the fake auction.
Thus, the victim-client receives a winning bid letter, just as happens in real auctions.
This letter includes a payment order to be fulfilled, usually via bank slip or bank deposit.
But to keep the scammers from showing their faces, the accounts are registered in the names of "straw men".
Thus, after the payment is made and the victims receive proof of payment, the criminals disappear and the scam is complete.
And for the victim, in most cases, all that remains is the loss of having fallen for the fake auction scam.
That's why learning how to avoid falling for fake auction scams is so important.
How to identify a fake auction website?
An important tip to avoid falling for fake auction scams is to be aware of when a particular website is fraudulent.
This is something very simple to do.
Simply visit the secure auction website!
Secure auction is an initiative of ALEIBRAS – the Brazilian Association of Auctioneers.
This association aims to keep auctions safe, reliable, and profitable for everyone involved in this type of business, that is, sellers and buyers.
Thus, the secure auction website emerged, featuring a tab dedicated solely to fake auction sites.
Therefore, when you come across an auction offer that seems too good to be true, go to the website leilãoseguro.org.br, click on fake websites and check if the website in question is on the list.
If the site is there, the advice here is simple: get out of there and report it.
What to do if you fall victim to a fake auction scam?
Although there are tips on how to avoid falling for fake auction scams, unfortunately many people still end up being deceived by criminals.
So, if you are among the people who have already been deceived by these criminals, the first piece of advice we give you is: stay calm.
We've outlined some steps you should take as soon as you fall victim to this type of scam.
Check out each of them below:
Gather as much information as you can.
The first tip is rather classic.
Gathering information is important because it's a way to document that you were the victim of a scam.
Therefore, it's important that you take screenshots, save documents, emails, phone contacts, WhatsApp conversations, and much more.
After gathering this information, hand it over to the appropriate authorities.
If more people have fallen victim to the fake auction scam, this increases the chances of the criminals being caught.
With the criminals caught, your chances of recovering your losses increase!
Avoid direct confrontation and buy time.
Most of the time when people realize they have been victims of a fake auction scam, the first thing they do is confront the criminals.
However, this is a fairly common mistake.
Just as important as not falling for fake auction scams is not falling for the tricks of these types of criminals.
Often they end up mocking the victims, which further increases their anger and frustration.
So, when you realize you've been a victim, try to call and communicate with the criminals, but not with the aim of confronting them.
When you notify the authorities that you have been a victim of this type of scam, it is possible to track the scammers' phone using the device's GPS.
Therefore, if possible, talk to them, but without threatening, and ask when the car will be delivered, inquire about the documentation, and anything else you might have.
In other words, save time!
File a police report as soon as possible.
A police report is a security document.
In other words, it confirms that you were the victim of a scam and allows for future compensation for damages.
Therefore, as soon as you realize that you have unfortunately become another victim of the fake auction scam, rush to the nearest police station and file a police report with as many details as possible.
Report it on consumer support websites that deal with auction fraud.
That's another important tip.
Being scammed by this type of fraud is definitely a terrible thing.
However, protecting people from falling victim to fake auction scams is something that must be done.
Therefore, after being deceived, it is necessary to file a complaint.
Today, the best places to report fake auction websites are at the consumer protection agency (Procon) and on the secure auction website.
In both locations, they will warn people about fraudulent websites and thus ensure that people do not fall for the fake auction scam.
Extra safety tips
Although avoiding fake auction scams may seem easy, in many situations people are guided by emotion rather than reason.
And there's nothing wrong with that.
After all, Brazilians are a hardworking people who are passionate about cars.
Thus, scammers end up using this passion to carry out scams.
However, to help you avoid becoming a victim of this type of scam, we've put together some important tips to keep in mind. These are:
- Be wary when the price is significantly below the list price;
- Look for auction houses that have the Secure Auction Seal or the ALEIBRAS seal;
- Search the auction houses' social media profiles;
- Check if the address provided on the auctioneer's website actually exists;
- Check the list of fake auction sites before placing your bids;
- If you've never bought a car at auction, seek help from a friend who has.
By following all the tips we've just given you, the chances of not falling for the fake auction scam increase.
Learn how the Secure Auction Seal works.
Now that you've learned how to avoid falling for fake auction scams, how about learning about the Secure Auction Seal?
The Secure Auction Seal is a very important initiative when we talk about security in the vehicle auction industry.
Our experts have created a special article for you to learn about the Secure Auction Seal and discover why it exists.
If you're looking for secure auctions to participate in, then you need to click the link below.
Secure Auction Seal: safety and peace of mind
Learn about the Secure Auction Seal, what it's for, and why you should always look for it on auction websites!
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