In St. Petersburg, authorities uncovered a ring of fraudsters who stole vehicles from owners who had placed their cars up for sale, according to the press service of the Ministry of Internal Affairs of Russia.
The criminals cloaked themselves with the identity of a genuine car dealership. They rented an office in the Krasnogvardeisky district, forged documents, and produced fake seals and signs. Their method involved hunting for car sale ads on classified sites, reaching out to dealers, and offering a service that placed the vehicle under a commission arrangement at a so‑called real car center.
Once agency contracts were signed, the perpetrators seized the cars along with their keys and owners’ documents. To avoid suspicion, they sent counterfeit money transfer orders to the owners and blamed various technical problems for delays in funds reaching the accounts.
The scammers proceeded to sell the cars they were allocated and split the proceeds. In some cases, they even returned money to the actual owners to prevent police involvement. They also deceived buyers who approached them, taking upfront payments under the guise of securing a vehicle and then cutting off all contact.
Overall, the fake dealership is believed to have stolen 11 cars, causing damage totaling about 8 million rubles, as reported by the ministry.
No commission
Oleg Moseev, founder of the Automarketologist project and former head of the Russian Association of Auto Dealers, notes that scammers exploited a customer’s desire for a bargain while avoiding the consequences of outright vehicle theft. He adds that changing the terms of a contract or pressing for a predatory loan during a car deal can be easier and safer for fraudsters than stealing a car directly.
“People are drawn to low‑priced listings, but existing contracts can be altered, and prepayments may not be refunded once a signing happens at a location where a different price is stated.”
Therefore, contracts should be read carefully, and in general it is wiser to work with reputable dealers that have a long-standing market presence. Legal literacy is essential for anyone buying a car, Moseev emphasizes.
When selling a car privately, it is crucial to keep in mind that:
It is absolutely not advisable to hand a vehicle to random brokers for a commission.
If a seller agrees to a commission sale, they should deal with a trusted, legitimate dealership with a solid reputation.
“Dealers often handle purchases on-site. When selling a car through informal street channels, ensure the money is received in the seller’s account before completing the deal. Dealers can arrange such transactions when they can verify the car on the spot.”
It is also important to note that cash payments should be avoided in these deals, as proving a cash transfer can be difficult in disputes, the expert warns.
“Professional players rarely use cash. There are plenty of offers or scams similar to this.”
While high offers aren’t inherently bad, they may come with unreported taxes. Fraudsters can show money for a car they never deliver, or a buyer may end up empty‑handed, notes Moseev.
“Killed and ‘Total’”
VSK Insurance House has highlighted several common car scams. One tactic is selling vehicles with damaged or falsified VIN numbers, which can be difficult for a layperson to detect without careful document verification. The best safeguard is to transfer funds only after the registration process with the traffic police has been completed.
Another prevalent scheme involves selling a car through a proxy by an unauthorized person, making it hard for a buyer to identify the real owner.
A power of attorney may be fake or invalid at the time of the transaction. You can verify a power of attorney on the Federal Notary Chamber’s website, but even if a POA exists in the registry, it could still be counterfeit or include rights not present in the original document.
Another tactic is selling a refurbished vehicle once declared unusable, a status car insurance companies refer to as being “total.” In such cases, buyers risk purchasing a dangerous vehicle. Scammers may also try to sell a mortgaged car using a duplicate deed without a bank mark.
In some scenarios, the vehicle may no longer be listed in the vehicle registry, or without the proper insurance documents, complicating ownership transfers.
“I stole it, I sold it myself.”
Nikolay Filatov, deputy head of a regional coordination department, highlights another frequent fraud method: the insured claim that a car was stolen when, in fact, it was sold. The insurer then pays out to the supposed victim, and the vehicle is later recovered or withheld from the legitimate buyer when the car is registered with authorities.
Another common trick is pressure to buy a car on credit with the promise of renting it back to the scammer for a quick profit. Victims may end up handing over keys to a brand‑new vehicle, only for the scammer to disappear with it later, according to Filatov.
Filatov notes that last year, one scammer near the south of the country was stopped after targeting potential buyers through his wife, who works at a beauty salon. They urged clients to purchase a premium car in a different region and then bring the vehicle to a central hub, touting the benefits of a quick profit from renting in a major city. After transferring the car, the new associate ceased all communication, and the buyer later reported the theft to the insurer.
These stories underscore the risk of trusting informal networks and highlight the importance of performing due diligence, using verifiable dealers, and following a clear, legally enforceable sale process to protect both buyers and sellers.