Used Car Auto Sales Fraud Proliferates -- the phantom escrow scam

If anything is too good to be true --- it generally is not true. Purchase a $25k automobile for $9800 -- not a chance.

Frauds have existed for many years but it seems that new technologies, greed, and just ingenuity on the part of fraudsters keep the public guessing and at risk. Furthermore, it may be that hard economic times create pressures on many to find better deals, cheaper prices, and to chase the unbelievable.

I was recently in the market for a replacement vehicle and I considered purchasing a 2007 Chevy Tahoe LTZ with 4x4 and loaded options. I searched the online sites and found several attractively priced automobiles -- with much lower than market pricing. The only catch, the seller would not allow inspection of the vehicle and wanted money to be sent to a 3rd party escrow agent -- using some reported "ebay motors" escrow process -- the only thing is that Ebay does not offer such service. So I decided to check further and found this interesting article highlighting the typical escrow scam; http://theautoprophet.blogspot.com/2008/10/new-ebay-motors-scam.html

Take for instance this current ad posted at http://atlanta.craigslist.org/wat/pts/1735726456.html that reports to sell a 2007 Chevy Tahoe LTZ with 70,000 miles for $9800. The seller presents a somewhat believable story that he is in the military and heading overseas in a few weeks and he has decided to sell his car quickly. Here is the problem however, if the seller were really in need of cash -- he should take the vehicle to Carmax immediately and get average trade-in and get $25k with ease. This should send warning bells off to anyone -- it is illogical, and foolish.

And now to protect you the public from this scam and scammer I relate the following particulars of this particular scam, and communications from the scam seller to me (a potential buyer). The seller represents himself as James Roberson -- and this is indeed a pun as James indeed seeks to Rob me and my sons of my hard earned monies.

# # #

James Roberson

Mr. Roberson writes,

"My time is limited and as much as I'd like to meet you and close the deal in person or sell it locally, this is impossible for me. That's why I have decided to sell the car over the Internet."

The sale will be managed through eBay under their Vehicle Purchase Protection program since they offer the highest rate of safety and reliability during online transactions. They act as a neutral third party. I will briefly describe the Vehicle Purchase Protection Program transaction steps so I can make things clear for both of us:

1. Buyer and seller reach an agreement (price and delivery conditions)
2. Buyer sends money to an eBay Motors Agent.
3. eBay Motors confirm to seller that the amount has been received.
4. Seller performs the required services (shipping, insurance).
5. Buyer accepts delivery and informs eBay Motors about the acceptance.
6. eBay Motors release the money to seller.

They will hold and insure your money until you will receive and test the car.

I need your full name and shipping address so I can reserve the car for you and register the transaction with eBay and they will contact you with all the instructions step by step on how to complete the transaction.
VIN 1GNFK13007R220368

Here is what I find wrong with the above --

(1) This is a typical automobile escrow scam;

(2) Ebay motors does not provide an escrow service;

(3) The money transfers from your hands before you inspect the goods or title transfers;

(4) The proposed 3rd party unnamed dealer is unknown

(5) The seller refused to allow site inspection of the vehicle before the sale;

(6) The seller refused to meet the buyer at a neutral location such as a branch of a national bank in his area where a notary public, bona fide cashiers checks could be made and presented.

(7) The seller could or would not provide an opportunity to validate the title prior to money transfer; if the above vehicle were totaled and had a salvage title, it would be possible that it was just a shell and not operational.

(8) The VIN number provided is likely a valid number, however the background in the photos is not consistent with the sellers area, and looks more like Asheville, NC rather than Pensacola FL or Atlanta where the ads were posted.

So let this be a lesson to you, and beware -- if a deal looks to good -- it is to good -- and run, not walk away from the temptation.

In closing, here is some sage advice from another on this same topic: http://www.carbuyingtips.com/used.htm

Do Not Buy That Used Car If.....
These are the top mistakes made by used car buyers. Don't let this happen to you!

• The 17 digit VIN#'s on the door, hood, engine, dashboard do not all match exactly
• You failed to have a mechanic check out the car on a lift
• You did not run the Experian AutoCheck Vehicle History Reports on the car's VIN# prior to purchasing
• The title still shows a lien holder with no "Lien Satisfied" stamp on it. It means they still owe the bank
• The AutoCheck report shows evidence of odometer rollback or title branded as junk, flooded, stolen, etc
• There is no VIN# on the dashboard, or it has been filed down or altered in any way
• The seller does not let you drive the car first
• The seller does not back up every verbal promise IN WRITING!
• The seller is NOT the owner of the car. It means they are a dealer's agent
• The seller has no written bill of sale identifying the car, VIN#, and stating the title has not been rebuilt, etc.
• The seller does not give you copies of anything you ask for
• It's parked along the side of the road with a For sale sign, unless you can verify they are the owner
• The seller has no drivers license, title, and registration for the car. Assume the car is stolen
• You have not verified the seller's name on their drivers license is the same person on the car title
• The seller refuses to let you take the car to a trusted mechanic for inspection
• The seller's asking price is suspiciously far below market value
• The seller makes you sign a power of attorney, or only wants cash
• The seller tells you to pay now, and he'll get you the title tomorrow, it's locked up at the bank

Credit Card Fraud Escalates -- 40% increase in UK

May 19, 2010. London Times reported... "The number of victims of the “hidden crime” of card fraud has leapt by 40 per cent in a year to more than 2.4 million people. Credit and debit card fraud, which cost the banks £440 million last year, is rising fast at a time when figures for other types of crime indicate that the feared recession crimewave has failed to materialize. The number of victims is not included in the annual British Crime Survey, however, disguising the full extent of property crime in England and Wales. People are three times more likely to fall victim to plastic card fraud than have their homes burgled. A total of 6.4 per cent of card owners were the victims of fraud in 2008-09 compared with 4.7 per cent the previous year. However, the extent of card crime is hidden because the crime survey gives only percentages rather than the precise number of victims."

Metal thefts rise in amount and sophistication

From the New York Times - Photo of scrap yard metal available for recycling.

Criminals have become more brazen and educated in their metal thefts. It was formerly that drug users would scrap fully functioning air-conditioning units, guard rails, and other metals they could get their hands on. Now the metal crimes are much more glaring -- with miles of electrical power lines cut down, dragged, stripped, and hauled off within hours. The hyperlinked article shows the current plight of organized retail crime as it relates to metal theft.

http://www.nytimes.com/2010/05/16/us/16farms.html

Major Jewelers Hit by Crime Wave

Jewellery Brands Targeted for Large Heists

World-famous jewellery brands are being targeted by brazen thieves, with De Beers and Tiffany & Co the latest victims.

A gang of 10 robbers used sledgehammers to break into the De Beers and Tiffany & Co stores in London’s Westfield shopping centre.

At least $1.6 million in jewellery was stolen in the night raids on Wednesday, May 5, The Australian reported last week

The robbery was over in just a few minutes, with the thieves fleeing the scene in stolen cars.

A high-speed police chase followed, however the gang managed to elude police.

After the robbery, Francois Delage, chief executive of De Beers, raised a few eyebrows by turning news of the theft into a sales pitch.

"This is an unfortunate incident, but is yet another reminder of the timeless allure of diamonds," he said.

London jewellers have experienced a spate of similar attacks over the past year, often involving gangs of thieves and heavy tools.

More than $6.7 million worth of goods have been taken from Watches of Switzerland, Cartier, Dolce & Gabbana and Tiffany & Co.

The most notable robbery occurred in August last year, when more than $67 million worth of diamonds were stolen from Graff Diamonds - Britain’s biggest jewellery robbery of all time.

Three teenagers have been arrested in relation to the most recent robberies, although charges are yet to be laid.

Crime Wave Alert - Atlanta GA - Campus Concerns

Typically, the tipping point of recognition of a crime wave is some heinous incident. Such was the case this past Sunday in Atlanta.

In announcing the new offensive to bolster campus security, Atlanta Police Department acknowledged a singular incident raised consensus for need; last Sunday night four students were carjacked and kidnapped a block away from the Morehouse campus. The youths were able to call 911 on a cell phone and were rescued by police.

The Atlanta Constitution Reported that, "The plan was formalized Tuesday on Georgia Tech's campus, which has been plagued by a series of robberies dating back to May, when a student was shot at a parking deck on Northside Drive and Tenth Street. Last week, there were three incidents reported in which Tech students were robbed either on campus or a short distance from the school." "This is the second major APD initiative on campus crime in the last six months. Last fall then-Police Chief Richard Pennington announced the department would dispatch eight uniformed officers to keep watch over the neighborhoods near Tech and the Atlanta University Center. But Turner said those increased patrols dwindled once the revenue source for overtime pay dried up."

Crime Wave Alert - Chicago violent crime on the rise, appeals for national guard to assist

CNN reported on April 26, 2010, that a "violent crime wave in Chicago" has prompted calls for the National Guard to step in. Two Illinois law makers are urging IL State Governor Pat Quinn to deploy troops following a recent surge in violent crime. Unfortunately, the National Guard, outside of Military Police, are not trained for doing police work -- they are not versed in domestic law enforcement, and are not a good fit. Yet it is interesting to observe that for all the publicly voiced opinions that no crime wave exists, that there are some experiencing acute pain from this economic downturn that they attribute to the conditions giving rise to a crime wave.

Read the article below. The comments on the CNN web link are also revealing in terms of capturing attitudes about the crime situation in Chicago.

April 26, 2010

Chicago Violence: Is the National Guard the Solution?

Posted: 09:15 AM ET

A violent crime wave in Chicago prompts a call for the National Guard to step in. Two Illinois lawmakers, State Reprepresentatives John Fritchey (D) and LaShawn Ford (D), are urging Governor Pat Quinn to deploy troops following a recent surge in violent crime. "We're not talking about rolling tanks down the street," said Fritchey. "If we bring them in to fill sand bags and pick up tornado debris, we can bring them in to save lives."

While they may believe the Guard is the solution, Chicago Police Supt. Jody Weis disagrees. Weis says the Guard's military training falls short of the criminal laws and procedures that police must follow in combating crime. “I’m not that mixing the National Guard with local law enforcement is the solution," Weis said.

We want to hear from you. Tell us whether you think the National Guard should be called in to help combat the city’s recent crime wave.

Leave us a comment. We’ll share some of them on air in the CNN Newsroom, 11am – 1pm ET

Crime Wave Alert - Honduras - civil unrest, massive peasant squatters movement

In Honduras, government leaders are calling it a crime wave, and are planning to use the military to put down crime wave, that peasant leaders fear will include an assault on peasant squatters that have seized over 10,000 acres of farmland from large corporate owners.

"Zelaya's supporters expressed fear the security buildup might be used in a crackdown on a peasant squatter movement in the area. Just before the coup, about 3,000 farm workers seized almost 10,000 acres (4,000 hectares) in commercial plantations used to grow African palms. The pro-Zelaya National Popular Resistance Front said the Aguan deployment posed a serious threat of raids to clear the squatters."

The AP Press reported that "Troops will be sent into Honduras' streets to help police combat a wave of violent crime, the government said Tuesday. Defense Minister Marlon Pascua told reporters that soldiers will be assigned to search vehicles and pedestrians and pursue criminal suspects. He did not specify when the troops would be deployed."

This Central American country of 7.7 million people suffered more than 5,300 homicides in 2009 while grappling with a political crisis touched off by a coup. The country's army was harshly criticized after soldiers hustled then-President Manuel Zelaya out of the country aboard an airplane last June. All six members of the military's Joint Chiefs of Staff were charged with abuse of power in January, but all were later cleared by a Supreme Court judge. Lawmakers approved amnesty for both Zelaya and all those involved in his removal. On Monday, Lobo's administration announced it was sending more than 2,000 soldiers and police officers to the Atlantic coast region around the Aguan River to seize drugs and illegal weapons. Drug cartels are increasingly using the coasts of Central America to move drugs toward the U.S. market.

Read more: http://www.macon.com/2010/04/13/1093389/honduran-army-to-help-combat-violent.html#ixzz0lGkPC9T1