DECEMBER 21, 2009

Online thieves setting up Web sites in name of legitimate dealers

Secretary of State Terri Lynn Land today warned consumers about a new online scam in which thieves create a Web site in the name of an unsuspecting legitimate auto dealer to trick people into thinking they're buying a repossessed vehicle.

In at least two cases, scammers have created sites made to seem like they offer vehicles from licensed Michigan auto dealerships. The sites offer deals at far below normal market price, such as a 2009 Ford Mustang with less than 2,000 miles that costs $7,196. They claim the vehicles were repossessed, and the new owners, such as banks, want to sell the vehicles as fast as possible to recoup whatever money they can.

Victims wire money to the operators of the sites believing the vehicles will be delivered within a week, although they never are.

"A good rule to have is that if a deal seems too good to be true, it probably is," Land said. "Shopping online can be a convenient way to find good deals, but make sure you know who you're doing business with, especially with big-ticket items like autos. If you are unfamiliar with a Web site or online company, do some extra research to find out if the business is legitimate."

Land warned people not to buy vehicles from the Web sites www.star7auto.com and www.summit-autosales.com, or Web sites that operate in a similar way. The two sites are not affiliated with either of the Michigan dealerships with those names. Similar scams already have been detected in other states.

The cases that have been investigated by Secretary of State staff are being referred to the Attorney General's Office for possible prosecution.

If people believe they have been the victim of consumer fraud, they can file a complaint by contacting the Attorney General's Consumer Protection Division at (877) 765-8388 or www.Michigan.gov/ag.

For problems related to auto dealers, repair facilities and mechanics, visit the Secretary of State's Office at www.Michigan.gov/sos or by calling (888) SOS-MICH (767-6424).