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'These sophisticated scammers create convincing fake accounts that use WesBank branding, purporting to be official representatives selling bank auction vehicles.'
For illustrative purposes. Picture: iStock
Many people in South Africa opt to buy second-hand cars for various reasons and at different places. One of the most popular ways to buy a car is at an auction, due to the reasonable prices and varied conditions of the cars.
As the world advances, so have the methods to participate in an auction. Thanks to technology, one can buy a car from an auction while sitting in the comfort of their own home, office, restaurant, or even at an airport. However, WesBank has warned individuals of the risks of buying at an online auction.
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The vehicle and asset finance provider reports a surge in online auction scams, particularly on platforms like TikTok.
How car scams work
WesBank says fraudsters are targeting unsuspecting customers, hoping to capitalise on bargains in the automotive retail space.
“These sophisticated scammers create convincing fake accounts that use WesBank branding, purporting to be official representatives selling bank auction vehicles. They lure unsuspecting buyers with seemingly irresistible deals, pressuring them to pay over large sums of money to “secure” what appears to be an auction-listed vehicle,” said Lebo Gaoaketse, Head of Marketing and Communication at WesBank.
However, once the payment is made, the scammers quickly close their fake accounts and vanish with the customer’s money, leaving their victims with no recourse.
Tips when buying cars online
WesBank offered essential tips people can follow when buying cars online.
- Registration and deposits: To participate in a legitimate auction, registration is mandatory. A refundable deposit is typically required from the bidder upon registration. It is crucial to understand that a genuine WesBank auction will never require a deposit to secure a specific car before the auction. “If you are asked for such a deposit, it is a major red flag.”
- Know the terms and conditions: Always familiarise yourself with the general terms and conditions of auction sales. This includes understanding payment procedures, buyer responsibilities, and refund policies.
- Beware of “too good to be true” offers: Always ensure you are dealing with a reputable auction house and an authorised representative. “As the saying goes, if an offer seems ‘too good to be true,’ it probably is.”
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Dealing with a trusted source
“Always ensure that you are dealing with a registered auction house, and in the case of a bank auction, an official bank representative,” said Gaoaketse.
“Do not be tempted to accept unofficial offers. It is often a ploy to defraud those looking for a good deal. Trust your instincts and proceed with caution. It’s better to err on the side of caution than to fall victim to a fraud scheme.”
Recognising red flags
Staying alert for red flags is crucial to protect yourself. Be vigilant for common warning signs such as:
- Sellers requesting payment outside of the official auction platform.
- Reluctance to provide additional information or photos of the vehicle.
- Vague or inconsistent product descriptions.
“We urge participants to report any suspicious activity promptly to the auction platform to prevent others from falling prey to scams and contribute to a safer online marketplace. By taking note of these guidelines and exercising caution, buyers can confidently navigate vehicle auctions, maximising their chances of securing a quality vehicle at a reasonable price,” Gaoaketse concludes.
Always verify information and find reliable details about official WesBank online vehicle auctions by visiting the vehicle and asset finance provider’s official page.
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