The stolen business name of a car dealership in Pontiac, Michigan was recently used to cheat at least 20 people out of thousands of dollars, including a woman from Connecticut, Consumer Protection Commissioner Jerry Farrell said today.
“We’re currently investigating the case of a Wallingford woman who wired close to $4,000 cash to an online car dealership, only to find that she had been defrauded by an international scam,” Commissioner Farrell said. “As more people become comfortable with online buying, it’s important to alert consumers to this new twist on identity theft. The theft and misuse of business identities could prove extremely costly to both consumers and businesses themselves.”
Last month, the owner of Summit Auto Sales in Pontiac, Michigan discovered that an online scam artist had stolen his business name and street address as the basis for a phony web site. The fraudulent site used the Summit Auto Sales name and Michigan address to scam unsuspecting customers into buying cars online. “Too good to be true” deals, like a 2009 Ford Mustang Coupe with 1,908 miles for just $7,196 were featured on the website, which also indicated that purchased vehicles would be shipped directly to the buyer from Michigan.
The site claimed its unbelievable prices were because it was selling repossessed vehicles, and customers were urged to act fast, as the inventory changed rather quickly.
None of the claims were true, the cars were never delivered to the consumer, and frustrated buyers found no way to reach a live person through the website. The telephone number provided on the website brought up a voice recording directing callers back to the website to use the online contact form.
The first person to uncover the scam had paid for a vehicle through the fake website and got upset when it never arrived. By looking up Summit Auto Sales in various directories, the person found the actual phone number for the Summit Auto Sales Inc. in Pontiac, Michigan and called. Of course, owner Morris Skoropa had no idea what the caller was talking about.
Skoropa has since been contacted buy frustrated buyers from across the country, and has been working with his bank, an attorney, and state and local authorities to clear his business name.
The phony website was tracked to Australia, and authorities are working to locate the perpetrators, though they admit it’s nearly impossible to pursue crimes that cross international borders.
“This is a unique case in our experience, and I’m hoping that this can serve as a warning that we all need to do all we can to prevent these scams from expanding,” Farrell said. “I think it’s an important reminder for consumers to stay on guard when shopping online. Remember, if it looks to good to be true, it’s not true, so stay away. And finally, be extremely careful when buying a large-ticket item online. There are scam artists just waiting to take your money. If you absolutely must buy online, never send cash; always use a credit card or a secure payment system such as PayPal."
