Car Scams How Fake Dealership Websites Steal Your Money

Federal regulators are warning car shoppers about a growing wave of car scams that use fake, near identical copies of real dealership websites to trick people into paying for vehicles that do not exist.

How This Car Scam Works

According to a consumer alert from the Federal Trade Commission, scammers are using artificial intelligence to build convincing replicas of legitimate dealer sites. They copy logos, vehicle photos, and listings, and sometimes add fake customer reviews to make everything look real. Many of these fake listings feature rare muscle cars or hard to find classic vehicles, since buyers are often willing to move fast and pay upfront for something they think is a great deal.

The scammers walk victims through a detailed buying process and even promise flexible return policies to build trust. Then comes the catch. They insist on payment upfront, usually through wire transfer or another method that is difficult to reverse once the money is sent. By the time the buyer tries to pick up the car or contact the real dealership, they learn there is no order, no payment on file, and no vehicle waiting for them.

How Big the Problem Has Become

The FTC has not released a specific dollar figure just for this dealership cloning scheme, but related numbers paint a troubling picture. Americans reported losing about 3.5 billion dollars to impersonation scams in 2025, nearly three times what was lost in 2020. Close to 1 billion dollars of that came from scammers pretending to be legitimate businesses. Overall fraud losses reported to the FTC last year reached nearly 15.9 billion dollars, with impersonation scams topping the list for the fifth year in a row.

Industry reports on these types of car scams say individual victims have lost anywhere from around 3,500 dollars to as much as 50,000 dollars. Once money is wired, recovering it is extremely difficult.

Not a New Trick, But an Easier One

This is not an entirely new trick. Years ago, federal investigators linked a similar scheme to a group overseas that made millions selling cars that never existed through fake dealer sites and online listings. What has changed is how easy and cheap it now is to build a convincing fake website using AI tools, which is why the FTC is renewing its warning this year.

How to Avoid Falling for This Car Scam

To avoid becoming a victim of these car scams, experts recommend a few basic precautions:

Search the dealership's name along with words like scam or complaint before sending any money.

Insist on seeing the vehicle and the dealership in person, or hire an independent inspector if you live far away.

Avoid any seller who accepts only wire transfers.

Double check the website address for small misspellings, and confirm the dealer's phone number and location using an independent source like Google Maps or the car brand's official website.

Report It

Anyone who suspects they have run into this kind of car scam is encouraged to stop all contact with the seller and report it at ReportFraud.ftc.gov, which helps investigators track patterns and warn others.

Sources

• Federal Trade Commission, consumer alert on fake dealership websites
• FTC Consumer Advice