The Wisconsin Department of Transportation (WisDOT) reported 1,259 instances of online vehicle sale scams last year, and the Division of Motor Vehicles (DMV) said Feb. 24 that vehicle scams are continuing to rise at an alarming rate.
DMV Dealer and Agent Section Chief Maura Schifalacqua, who works to track online vehicle sale scams, investigates consumer complaints and offers tips to customers, said that the fraud scheme usually starts online as a fake storefront.
“An individual [usually] creates a website or a social media profile claiming to be a Wisconsin dealership,” Schifalacqua said. “Stock images or photos of real vehicles and real Wisconsin dealerships are included to make the website seem legitimate. However, there is nothing legitimate about it. The advertised vehicles may be listed at below market value causing interested consumers to take the bait.”
Schifalacqua, whose unit is responsible for consumer complaints, dealer inspections, unlicensed dealer investigations, and title and odometer fraud said that a lot of online vehicle sale scams follow a pattern of fake websites or social media pages, cars priced below market value and no in-person contact with the seller. The DMV reported that a lot of the scams begin with Facebook profiles alleging to be legitimate Wisconsin dealerships.
“In one case, the business never existed,” Schifalacqua said. “In many cases, the fraudster interacts with the consumer by phone or email. The buyer might receive a bill of sale and several photos of a vehicle and agree to purchase by wire transfer, believing the seller will ship the car to them. After the wire transfer is completed, the seller stops all contact, and the customer eventually realizes they’ve become a victim of fraud.”
Schifalacqua laid out a set of tips for customers to remain safe while buying a vehicle from an online dealer, including to research the dealership ahead of time including verifying phone number, address, email and other contact information. The DMV also said it wants to remind people to watch for numerous spelling or grammatical errors on the seller’s website or manipulated photos of a business or vehicle.
When buying a vehicle online, WisDOT recommends going to its active dealers list to verify licensed dealers at wisconsindmv.gov/dealerlist. The list includes motor vehicle dealers and motorcycle dealers who are properly licensed to sell. This list is updated daily and readily available to the public. Schifalacqua said the biggest advice is to walk away if something doesn’t feel right.
If someone believes they have fallen victim to online vehicle sale fraud, they can speak to WisDOT’s DMV Dealer and Agent Section by filing a dealer complaint at wisconsindmv.gov/dealercomplaint or file a police report with local law enforcement.
According to WisDOT, the DMV’s Dealer and Agent Section’s Field Investigation Unit returned approximately $1.7 million to car buyers in 2024.
