The ontario motor vehicle Industry Council (OMVIC) has issued a warning about a potential (and rather elaborate) fraud scam that targets automotive dealers in the province. This follows a recent incident concerning a retailer located within the Greater Toronto Area.
The retail scam, which took place over three days, went essentially like this:
day one:
Dealer contacted by potential buyer online in response to advertisement for luxury sports vehicle.
Buyer says his company has agreed to buy vehicle and tells dealer a wire transfer for the full amount of the purchase price ($49,519) would be wire transferred the next day.
Buyer insists vehicle be ready for delivery in two days.
Dealer asks for copy of company registration and buyer’s driver’s licence because buyer insists vehicle be registered in company name. Buyer’s “accountant” promptly faxes said documents to dealer. Documents show company registered in Ottawa and purchaser with a Quebec driving licence.
Dealer faxes back purchase agreement, which is signed and returned promptly by buyer.
day two:
Dealer sees agreed amount ($49,519) deposited into their bank account.
Dealer prepares vehicle for delivery as requested.
Buyer’s “accountant” calls to ask if vehicle ownership has been transferred, since a copy is required for insurance purposes.
day three:
Buyer’s “accountant” calls again to ask about ownership document.
The “accountant” explains that buyer is too busy to collect vehicle and will arrange “lawyer” to collect instead.
Dealer refuses and asks buyer to call dealership to confirm request.
Dealer receives a call from their bank, which says deposited funds are bogus. The $49,519 isn’t in fact a wire transfer but a cheque written on an unrelated company account that has now been conveniently closed. As a result, cheque is dishonoured.
Dealer calls back buyer and in return receives excuses and the promise of a bank draft. Follow up calls by dealer go answered.
Fortunately, in this particular case, due to the diligence of both the dealer and the dealer’s bank, the former was able to stop the sale transfer process, thus the vehicle remained the dealer’s property. Still, OMVIC is urging dealers to be vigilant about such scenarios or if something unusual or shady appears to be happening during the sales process of a vehicle.
For more information on this potential scam, dealers can contact OMVIC’s Terry O’Keefe: terry.okeefe@omvic.ca or (416) 226-4500 x 3525.
