The Sconi

The Wisconsin Department of Transportation's Division of Motor Vehicles (DMV) has observed an increase in fraudulent activities by individuals posing as legitimate car dealers online. This issue is being monitored by the DMV’s Dealer and Agent Section, which investigates consumer complaints and provides guidance to potential buyers.

According to Maura Schifalacqua, Chief of the DMV Dealer and Agent Section, "The fraud scheme starts online as a fake storefront. An individual creates a website or a social media profile claiming to be a Wisconsin dealership." These sites often use stock images or photos from real dealerships to appear credible, but they are entirely fictitious. Vehicles are advertised at prices below market value, enticing consumers into scams.

The fraudulent practice known as dealer cloning involves creating fake websites or social media pages with cars priced attractively low. There is no direct contact with the seller in these cases. Schifalacqua noted that "In one case, the business never existed," and explained that interactions usually occur via phone or email. Victims may receive a bill of sale and vehicle photos, leading them to agree on purchasing through wire transfers. Once the payment is made, all communication ceases.

To protect themselves when buying vehicles from dealers, WisDOT advises consumers to:

- Look for spelling errors or manipulated photos on sellers' websites.

- Verify dealership details such as phone numbers and addresses.

- Check WisDOT’s active dealers list at wisconsindmv.gov/dealerlist for licensed dealers.

- Inspect vehicles personally before purchase.

- Ensure transactions involve a Motor Vehicle Purchase Contract as required by law.

- Avoid suspicious payment methods like gift cards.

- Independently verify bank information before making wire transfers.

If any aspect seems questionable during a transaction, it is recommended to walk away.

Victims of motor vehicle sale scams can file complaints with WisDOT’s DMV Dealer and Agent Section at wisconsindmv.gov/dealercomplaint or report internet crimes at www.ic3.gov. They may also consider filing police reports locally and seek assistance from AARP’s Fraud Watch Helpline.

In 2024 alone, the DMV's Field Investigation Unit handled 1,259 consumer complaints related to such scams and recovered approximately $1.7 million for car buyers. The unit's duties include handling consumer complaints, conducting dealer inspections, investigating unlicensed dealers, and addressing title and odometer fraud issues.

For more information about protecting yourself while purchasing vehicles in Wisconsin, visit wisconsindmv.gov.