Mar 20, 2026
While many consumers are vigilant when it comes to online scams, some may not realize there’s another category of fraud that’s almost as popular — automobile-related scams.
Fraud related to car sales, service, financing and repairs was the third most common type of consumer complaint filed with the New York State Attorney General’s office in 2025 (1), but automobile fraud isn’t limited to the Empire State.
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As CBS News reports, Khaled Yaye of Harrisburg, Pennsylvania faces a whopping 144 charges for fraudulent business practices, all related to his car dealership, Yeni Auto Sales (2). Fox News also reports that Yaye faces an additional 130 violations of Pennsylvania Vehicle Code for fraudulently reassigning vehicle titles, misrepresenting facts in a vehicle sale and other unprofessional conduct (3).
How vehicle fraudsters scam their victims
Fraudsters can rip off unsuspecting victims in a number of ways, so it’s important for car buyers to be vigilant.
Title washing, where a seller hides or removes a lien or salvage status from a vehicle’s title, is a common practice among auto scammers, especially private sellers. Swift Auto Title Services also notes that some states don’t require salvage status — which indicates a car was damaged so badly that the cost of repairs was more than its market value — to appear on a title. This allows scammers to register a vehicle in one of these states to cover up its salvage status before selling the car in another state (4).
Fraudsters also use a tactic called title jumping to sell their cars.
“Title jumping happens when a seller doesn’t register their name on the vehicle before selling it,” states Swift Auto Title Services on its website. “They do this to skip taxes and legal fees, leaving you at risk after the purchase. You might face legal disputes if you try to sell the car later.”
Another tactic is to simply alter the title information, either on paper or digitally, to fake details about the vehicle in order to make it more attractive to buyers. If the car has a lien, for example, this passes the debt onto the new buyer.
VIN swapping — when a seller alters or fakes the vehicle identification number — is also a common practice used to offload salvaged cars. You can check a VIN using online services to protect yourself from this scam.
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Finally, the National Highway Traffic Safety Administration reports that there are as many as 452,000 cases of odometer fraud each year in America (5). This type of fraud involves disconnecting, resetting or in other ways altering the odometer to make it seem like the vehicle has less mileage on it than it really does. This can improve the car’s sale price for the fraudster, as it’s often difficult to detect this kind of manipulation.
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How to protect yourself against vehicle fraud
If you’re buying a used car, be sure to ask for the title and examine it carefully. You should also compare the mileage on the odometer to any available maintenance or inspection records.
If the car you want to buy is “like new,” with 20,000 or fewer miles on the odometer, one telltale sign of fraud is the tires. A car with so few miles should have its original tires. Other signs of wear and tear inside the vehicle, including on the pedals, should be noted and compared with the car’s apparent age and length of use.
You should also check for oil change and maintenance stickers, which are often under the hood, in the glove box or on windows and door frames. As a prospective buyer, you have the right to request a vehicle history report. If the seller does not have this, you can potentially use the VIN to find a vehicle’s history report online, or you may choose to walk away from the purchase entirely.
What to do if you’re a victim of vehicle fraud
If you suspect a seller is scamming you or you’ve been scammed, contact the Federal Trade Commission, as well as your state’s attorney general, immediately. Make sure to document everything related to the sale, including the original ad for the car, any text messages or emails shared with the seller, and as much as you can remember about what you were told in person about the car.
Your state’s attorney general will also want to see sale documentation, like the title transfer and any other written agreements between you and the seller. You should also take photos of any issues with the car, and if it needs repairs, get a written estimate from a qualified mechanic that details the work required, as well as the repair costs.
You can give the seller the opportunity to resolve the issue by contacting them in writing, which will strengthen your legal case if they refuse to cooperate. Your mechanic can also inspect the vehicle for signs of damage and wear that don’t match the documentation the seller provided, which can also help your case in the event that you need to pursue the matter in court.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
New York State Attorney General (1); CBS News (2); Fox News (3); Swift Auto Title Services (4); National Highway Traffic Safety Administration (5).
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Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
