It sounds reassuring: eBay car protection program. Imagine buying a used car online with the safety net of a major platform like eBay backing your purchase. Unfortunately, scammers are preying on this desire for security, and if someone selling a car online mentions an “eBay Buyer Protection Program” outside of the actual eBay platform, it’s a red flag for a scam.
This is exactly what happened to Sandra R. Wright, a Facebook user from Greenville, Mississippi. She contacted consumer advocate Clark Howard’s team after encountering a suspicious situation on Facebook Marketplace. Sandra explained, “I’m trying to purchase a vehicle that was advertised on Facebook Marketplace. The owner wants to go through the eBay Buyer Protection Plan. Now I have to send the owner money.”
Hold on! This scenario is a classic scam tactic. If you encounter this, stop immediately. As Clark Howard emphatically stated, “if you do send that money, you’ll neither see the car nor your money ever again.”
The Fake eBay Car Protection Ploy: How the Scam Works
These scams operate by leveraging the legitimate reputation of eBay and its actual Vehicle Purchase Protection program to trick buyers into sending money for vehicles that don’t exist or are not owned by the seller.
Colleen Tressler, a consumer education specialist for the Federal Trade Commission (FTC), explains how these criminals operate: “Criminals post ads on online auction and sales websites for inexpensive used cars that they don’t really own. They offer to chat online, share photos, and answer questions. They may even tell you the sale will go through [eBay’s] buyer protection program.”
Scammers often create a sense of legitimacy by sending fake invoices that appear to be from “eBay Motors,” even demanding payment through eBay gift cards. If a victim calls the number on these fake invoices, they are met with a scammer impersonating an eBay Motors representative. The FTC warns that trusting buyers have lost significant amounts of money falling for this trick.
eBay’s Real Vehicle Purchase Protection: What You Need to Know
It’s crucial to understand that eBay does offer a Vehicle Purchase Protection program, but it comes with very specific conditions. This genuine program can protect online purchases of eligible vehicles for up to $50,000 or the vehicle’s purchase price, whichever is lower.
However, and this is the critical point: eBay’s Vehicle Purchase Protection ONLY applies to vehicles listed and purchased DIRECTLY through the eBay platform. It does NOT extend to transactions initiated or conducted on platforms like Facebook Marketplace, Craigslist, or any other classifieds or bulletin board websites.
eBay itself clearly warns on its eBay Motors Security Center page: “If a Craigslist or non-eBay seller ‘promises’ you the eBay protection plan, this is false and almost certainly a scam, and you should walk away.” This is non-negotiable. Any mention of “eBay protection” for a car sale happening outside of eBay is a major red flag.
Recognizing the Red Flags of an Online Car Escrow Scam
The Better Business Bureau (BBB) identifies this type of scam as an “escrow scam” because scammers often request payment through third-party services or gift cards, making it difficult to trace the funds. Often, these scams are linked to organized crime, with investigations suggesting origins in Romania.
The BBB and other sources highlight several telltale signs of an online auto escrow scam:
- Unbelievably Low Price: The vehicle price is significantly below market value. This is designed to lure in victims quickly.
- Urgent Seller Story: Scammers often create stories to justify the low price and quick sale, such as deploying overseas, going through a divorce, or dealing with the emotional distress of selling a deceased family member’s car.
- Refusal to Meet or Show the Car: Sellers will avoid in-person meetings or vehicle inspections. They often use photos stolen from legitimate online ads, easily discoverable through a reverse image search on Google Images.
- “eBay Protection” Guarantee: Bogus sellers falsely claim the transaction is protected by eBay Motors or a third-party escrow service (which is also often fake). They may even send fraudulent invoices with eBay logos to appear legitimate.
Sandra’s Situation and Staying Safe From Car Buying Scams
Fortunately, as of the original article’s writing, Sandra Wright had not sent any money. Hopefully, she heeded the warning in time and avoided becoming a victim.
To protect yourself from these scams:
- Be Skeptical of Deals Too Good to Be True: Extremely low prices are a major warning sign.
- Verify Vehicle Listings: If a deal seems suspicious, do a reverse image search of the car photos and search for similar listings elsewhere.
- Never Send Money via Gift Cards or Wire Transfers for Online Car Purchases: Legitimate transactions offer secure and traceable payment methods.
- Insist on In-Person Inspection: Always try to see the vehicle in person before making any payment.
- Conduct Transactions on Secure Platforms: If you are buying on eBay, ensure the entire transaction is conducted through eBay’s official platform to be eligible for their Vehicle Purchase Protection.
Remember, when it comes to buying cars online, especially from private sellers, caution is paramount. If someone mentions “eBay car protection” for a sale happening outside of eBay, remember: it’s a scam. End of story.
