Online marketplaces like Facebook, Gumtree and Ebay enable a wide variety of transactions, many of them involving the buying and selling of cars and vehicles. These marketplaces also provide an environment which can give cover to bad actors who target buyers with fictitious listings.
AutoSettle is designed to address each of the parts of the transaction that are vulnerable, building trust for the purchase of an item that the buyer cannot see or touch and where verifying the identity of both parties is open to fraudulent behaviour.
Many of the online scams follow a pattern, which is one way to identify an illegal operation, but these relatively crude scams can be stopped using a platform like AutoSettle.
The journey begins with the listing. Scammers can use details from data breaches to create an account that mimics a real person or hack and use an account that might be dormant. The listing often uses a price that is ‘too good to be true’ to lure in potential buyers. AutoSettle is working with partners to compare listings across multiple platforms. Legitimate vehicles are often, if not always, listed at the same time across multiple marketplaces. Using data feeds and AI, AutoSettle can determine if the vehicle actually exists and compare the seller’s details between platforms. If the same vehicle is listed across platforms with different seller details, this can be a red flag.
The next part of the marketplace vehicle scam involves moving the buyer off the marketplace to direct communication, usually to a fake email account set up for the purpose. Communication between the buyer and seller is designed to explain away irregularities. AutoSettle forces the transaction and all communication to be on a platform where both parties are identified and verified.
In some of the online marketplace vehicle scams, the goal is to just get a smaller deposit amount. This is also done off the platform and uses fake payment pages or anonymous payment methods like gift-cards. AutoSettle uses payments that are backed by major Australian banks, no matter whether is is a deposit or the full amount.
Advocates of digital ID have shown that physical, card based identification like driver’s licenses can be forged and faked. Online scams use fake documents to try and establish trust and credibility with the buyer, but it is very difficult for the buyer to verify the authenticity of documents attached to emails. AutoSettle uses DigitalID technology through partners like Yoti to ensure both parties are who they say they are.
Sophisticated fraudsters are good at building websites that look like reputable ecommerce platforms or payment providers.
One way to stop marketplace vehicle scams is to try and sport and correct the behaviour on the platform, but in the days of smaller moderation teams, this is difficult. AI will be able to spot fraudulent listings, but establishing trust and verifying identity is harder.
AutoSettle is safe and secure by design at each part of the journey which is currently susceptible to fraud or bad actors. From identifying real vehicles to the identity of the buyer and the seller to secure payment, AutoSettle makes buying and selling a car in an online marketplace risk free.