FTC Warns Consumers About AI-Cloned Car Dealership Websites Leading to Fraudulent Sales
The Federal Trade Commission (FTC) has issued a warning regarding a new scam involving cloned car dealership websites. Scammers are utilizing artificial intelligence to create highly convincing replicas of legitimate dealership sites, complete with authentic-looking photos, vehicle listings, brand logos, and customer testimonials. These fraudulent websites are designed to trick online buyers into paying for vehicles that do not exist. Victims often discover the deception only when they arrive at the physical dealership for pickup, where staff have no record of their purchase or payment. The FTC advises consumers to be vigilant, recommending that they search online for the dealer's name alongside terms like 'scam,' 'review,' or 'complaint' to identify potential red flags. Additionally, consumers should insist on seeing the car and dealership in person, or if the distance is prohibitive, arrange for a mobile inspection service. A key warning sign is any demand for payment solely via wire transfer, which the ...