Car shopping should be exciting, not a minefield of hidden traps. Yet increasingly sophisticated scammers are using social media marketplaces, fake dealership websites, and AI-generated content to lure unsuspecting buyers into costly schemes—draining bank accounts, stealing identities, and even derailing financing for the very vehicle you’re trying to buy. Knowing the warning signs before you start browsing listings can mean the difference between driving away in your dream car and becoming the latest victim of auto fraud.
Before you head to the dealership or shop online for your next ride, familiarize yourself with these tips to help keep your money and your credit safe.
If a car deal seems too good to be true, take a closer look.
Scammers may advertise desirable or hard-to-find vehicles through social media marketplaces or fake dealership websites to get your attention. If the price is much lower than similar vehicles, consider it a red flag and take time to verify the listing.
Don’t assume a professional-looking website is legitimate.
Scammers can create fake websites that copy a real dealership’s logos, photos, and vehicle listings. With AI making it easier to create convincing content, you can’t always tell what’s legitimate based on how professional a website looks. Before putting down a deposit or sending money, independently research the dealership and verify that the vehicle actually exists.
Do your homework before you buy.
Search the dealership’s name along with terms like “scam,” “review” or “complaint.” When possible, see the vehicle in person before you pay, but if that’s not practical, consider having the vehicle independently inspected. If the seller won’t let you see or inspect the vehicle, that’s a reason to walk away.
Be skeptical of pressure to pay quickly or upfront.
Urgency is a common scam tactic. Take a step back if you’re being rushed to send a deposit, especially if someone insists on a wire transfer or discourages you from taking time to independently verify the vehicle or dealership.
Protect your personal information.
Be careful about where you provide sensitive personal and financial information when shopping for a car or applying for financing. Identity theft can have lasting consequences beyond the initial scam, including problems with your credit.
Identity theft can make it harder to finance a car.
If a scammer opens accounts or takes on debt in your name, it can damage your credit, which could affect your ability to qualify for an auto loan or get favorable financing terms.
Chase Credit Journey is a free credit and identity monitoring tool that can help you spot suspicious activity early.
If something feels off, pause and verify.
Buying a car is a major financial decision, so don’t rush. Always independently confirm you’re dealing with a legitimate seller, especially if payment instructions or contact information suddenly change.
If you think you’ve been scammed, act quickly. Stop sending money, call your bank to secure your accounts, and report the incident at ftc.gov/complaint.
JPMorganChase provides fraud and scam prevention education year-round through community workshops, digital resources and consumer awareness efforts. As part of Chase Fraud & Scam Prevention Month, Chase Community Managers will host hundreds of those free educational workshops across the country throughout November. For more information, visit Chase.com/security, stop by your local branch, and join an upcoming workshop. If you’re looking for additional guidance and educational resources on budgeting, financing and navigating the car-buying process, visit Chase.com/auto.
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