Drivers in Ireland are being warned over a new clever scam that is targeting people through fake car leasing services online.
The cost-of-living crisis has created more search-savvy shoppers when it comes to choosing a deal, but scammers are using this to their advantage online - offering quite literally the best deals around.
While most car leasing companies are legitimate, lately experts have been finding fake social media pages that lead to genuine-looking websites or provide phone numbers to con their potential “customers”.
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After becoming aware of these nasty scams, car leasing experts at Nationwide Vehicle Contracts found and dissected an online scam account, and have pinpointed what you need to look for to avoid falling victim.
5 scam warning signs to look out for on social media
“If you’re suspicious about a business, it’s always best to err on the side of caution. Scams are becoming increasingly sophisticated, so if something sounds too good to be true, it probably is, particularly if rates are hugely reduced compared to the rest of the market,” experts warned.
Very early on in their search, the car leasing professionals spotted what they believed to be a scam account - which is offering vulnerable customers the opportunity to ‘lease’ a car without having to engage in a credit check.
Nationwide Vehicle Contracts highlighted key warning signs that were all found with this account:
- Too good to be true offer - leasing without the need for a credit check
- Limited contact details - their website was not registered and the only contact details are a Whatsapp number
- No search results - when searching for the business name online, there were no reviews as claimed on the account and the only search record was the Instagram account
- The images of cars posted on the account were all taken from the internet. Experts were able to check this by reverse image searching on Google.
- This Instagram post used a photo that had been used by over 25 other websites and was offering a new car with no credit check.
Nationwide Vehicle Contracts also searched for the business name on the FCA and Companies House websites, but found no trace of a business operating under that name.
How to avoid a car leasing scam
Reputable car leasing companies who deal with regulated customers must register with certain organisations, including:
- Financial Services Register – The Financial Services Register holds details of every financial company who are registered and regulated by the FCA. If a company offers financial services or associated products, then you should be able to see their credentials by entering their name or postcode into the website. It’s important that if the company is not registered with the FCA, you should avoid using them.
- Companies House – You can confirm if a company is registered with the British Government by searching for a company's details on the Companies House website.
- BVRLA or FLA – Whilst it is not a legal requirement to join a trade body site, you can often use sites like the British Vehicle Rental and Leasing Association (BVRLA) or the Finance and Leasing Association (FLA) to help verify a car leasing company.
If you think you may be a victim of this scam, or any other, you should contact your bank and An Garda Siochana as soon as possible so that the necessary action can be taken to retrieve your money.
Keith Hawes, automotive specialist and Director of Nationwide Vehicle Contracts, said: “Ultimately, you should feel 100% comfortable before entering into an agreement with a leasing provider.
“If something doesn’t feel right, trust your instinct and run additional checks. If you use an unauthorised firm, you won't have access to the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS), so you're unlikely to get your money back if things go wrong”.
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