Start your journey to vehicle ownership with the help of our Street Smart video series, brought to you by Absa Vehicle Finance. In the 3rd instalment, Michelle Moodley from Absa highlights some of the red flags that vehicle owners and buyers need to watch out forto help them recognise some of the tactics employed by fraudsters…

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In the first episode of our series, Absa’s Fulufhelo Mandane discussedwhat you needto consider before you start shopping for a vehicle, the costs of ownership and your various finance options. In the video that followed, Mandane’s colleague Gordon Wood detailedhow the new Aftermarket Guidelines, which were recently introduced in the motor industry, affectyou as a vehicle owner…

In this instalment of the Street Smart video series,Michelle Moodley, Head of Operations: Sales Enablement at Absa Vehicle and Asset Finance emphasises the importance of takingprecautions to avoid falling into the traps of fraudsters.This is in light of the fact thatexisting and potential vehicle finance customers are not exempt from fraudulent schemes.

What’s more, if you intendto buy a vehicle (either privately or from a dealer), there are several ways to check whether a seller is reputable and acting in accordance with respectedvehicle-retail standards…

What should customers be cautious of when dealing with official communication from a banking institution?

Moodley:Customers should be careful of communication that doesn’t come from an identifiable e-mail address. For example, an e-mail offering support with a previously declined Vehicle Finance application from a banking institution like Absa, would not come from an e-mail address such as [email protected] a customer has doubts, they can contact the bank directly using independently sourced contact information, for examplefrom the Absa website.

Be wary of communication stating that the individual works in partnership with a bank such as Absa or that the customer was referred to them by the bank. Such communication may also promote the use of the fraudster’s verification procedures such as accessing unknown links, websites or contact details created by the fraudster.

Any communication where the client is asked to provide personal information which fraudsters can use to submit fraudulent applications on their behalf should raise alarm bells. Such communication may offer guaranteed approvals, unrealistic benefits etc.

What’s more, be wary of any documents purported to be from a bank with inconsistencies such as spelling errors, different font types, incorrect contact details, a logo in the incorrect position,etc.

What are typical traits displayed by fraudsters?

Moodley:Fraudsters may suggest that customers alter information on their documents, for example, income details, expenses, etc. to ensure that an application gets approved. They may be vague or non-responsive to questions when asked about the vehicle, product features or characteristics etc. AND they always create a sense of urgency and convince people that the deal won’t be available for long or that there are other buyers interested.

A general principle is that if the deal sounds too good to be true, you should ask questions and do your own research.

What should customers look out for when shopping online for a vehicle?

Moodley: When buying online, it is important to ask if you can come and view the vehicle at the business premises. This is to check if there will be any excuses as to why you cannot view the vehicle beforehand.

Be wary of requests for upfront payment before viewing the goods and, if the communication seems suspicious or if you are unsure, look the company up on the internet to confirm the details.

What should customers look out for when buying a vehicle privately?

Moodley: Always meet the prospective seller and ask to see proof of ownership, for example,a copy of the NaTISdocument or the last licence renewal request with the seller’s details before any money is exchanged and anything is agreed.

With the rising number of fraudulent scams negatively impacting vehicle buyers, Absa has developed a solution called Private Buy, which makes the purchase of a vehicle from a private seller more credible. We partner with dealers who conduct technical inspections on vehicles which help customers to make more informed decisions when buying a vehicle privately.

What are some important considerations when performing a transaction?

Moodley: Never pay a holding deposit if requested to do so urgently, check the premises of the seller or dealer via Google Maps and look at the surrounding areas and consult your bank’s online guidance around fraud and making secure payments.

Lastly, always buy from known and reputable dealers.Nothing is guaranteed, so do your own research and homework upfront before putting pen to paper.

Don’t hesitate to enquire…

Are you an Absa Vehicle Finance client and suspect that you have been targeted by fraudsters? Click herefor assistance with fraud-related matters.

Related content:

Absa’s Guide to Responsible Vehicle Ownership

Absa First-time Buyer Guide to Vehicle Finance

The New Normal, Podcast 3 – Time to revise your car insurance?

The New Normal, Podcast 2 – Car Dealerships of the Future

The New Normal, Podcast 1 – Changes in SA’s car-shopping patterns