Social media has emerged as the largest red flag for automotive buyers anxious about scams, with over a 3rd of consumers (34%) naming it the most definitely place to be targeted, in accordance with recent research from Close Brothers Motor Finance.
Private sales (15%), online auctions (14%), and classified ads (8%) also set alarm bells ringing.
In contrast, traditional players fare much better in public trust – just 4% suspect dealerships, and only 3% fear finance providers might be a scam risk.
However the threat is real. Fourteen percent of drivers say they or someone they know has fallen victim to car-related fraud. Meanwhile, dealers are feeling the warmth too: one in five (20%) report being scammed, and one other 31% say they’ve narrowly avoided it.
That’s left nearly 80% of dealers anxious about fraud’s impact on their business – with only a tiny 4% saying they’re not concerned.
Dealers are stepping up their defences in consequence with 76% running customer ID and credit checks, 64% training staff to identify scams, and 40% deploying specialist fraud detection software. Just 7% don’t have any plans to make use of such tech in the long run.
“Fraud is unfortunately becoming more common within the vehicle market, and it’s something that each buyers and sellers need to pay attention to,” said John Cassidy, managing director of sales at Close Brothers Motor Finance.
“While many individuals still feel confident buying from trusted dealerships, fraudsters are getting smarter, especially online.
“At Close Brothers Motor Finance, we’ve put in place extra security checks to assist protect our customers and dealer partners. This includes using advanced ID and document checks, in addition to working with organisations like Cifas to identify suspicious activity. These tools have already helped stop nearly 800,000 potential cases of fraud.
“We’re also providing training to our dealers to assist them stay alert to scams, and we’ve created a team of fraud experts inside our business to supply support when it’s needed.
Dealer data is drawn from Close Brothers Motor Finance’s Forecourt Foresight survey of 100 UK dealers earlier thi yr. Consumer data comes from Censuswide’s 2024 survey of two,074 UK drivers aged 17+ who own or lease a automotive.
This Article First Appeared At www.am-online.com
