Accentuated by the pandemic-driven lockdown regulation of the past 18 months, the allure of the fast-evolving online shopping experience has added a welcome convenience to the lives of many South Africans. As the list of online purchasing possibilities expands, along with the simultaneous levels of consumer confidence, so too does the risk of being lured by highly sophisticated scam syndicates.
“Everyone loves a bargain,” says Jacques van der Linde, Managing Director of Aucor Bloemfontein and a Director of The South African Institute of Auctioneers. And it’s this idea that leaves especially those yearning for a dream vehicle at an unbeatable price particularly susceptible to the practices of a modern syndicate.
At the forefront of scams targeting those looking for a new car is the growing appeal of an online auction process. Here, the consumer is initially targeted via legitimate-looking adverts placed on (notably) Facebook Marketplace or Instagram. After showing interest, direct contact is made, with an offer to secure the vehicle in question via a deposit ahead of its scheduled auction date. Following this, the vehicle is then supposedly pulled from the auction and, following the payment of the balance, ownership is scheduled to be transferred into its new owner’s name.
“The first thing to note is that no bank will sell a repossessed vehicle outside of an auction,” says van der Linde. “The process must at all times be deemed free, fair and transparent.” Anyone claiming to be able to influence this by securing a vehicle ahead of its allocated auction time – while bypassing FICA requirements – should be considered with suspicion.
Another important consideration is that any vehicle earmarked for auction will always be made available for viewing before any bid being placed. In the case of Aucor – and adapted to accommodate COVID restrictions – all vehicles are open for inspection for two days ahead of an auction slot. Should the car you’re interested in not be made available for viewing, it’s advisable not to part with any money no matter how enticing the deal is, or how convincing the seller might be.
Research suggests modern syndicates have adapted to appear extremely professional on the surface and, by all accounts, legitimate. Even going so far as to have a pseudo finance department perform a follow-up call to encourage a transaction.
Unfortunately, once a transaction has been paid, it becomes nearly impossible to trace as these funds are subsequently syphoned through myriad similar front accounts.
“Currently, in around 80% of the cases we’ve noted where unsuspecting consumers have been duped out of their hard-earned money, it’s been a Capitec-linked account involved,” says van der Linde. Opened legitimately by mules hired by the syndicates, these accounts are then handed over for use in the scam. This is why it’s imperative that people use the technology available to verify the listed beneficiary of an account before paying any funds into it. A red flag should be raised when an account is linked to an individual, rather than a business.
It’s always painful hearing stories of people losing large amounts of money to fraudsters, in the case of an auction house like Aucor, the reality of the situation is that despite playing no role whatsoever in the process, shocked and angry victims instinctively point fingers at the only tangible entity linked to such a scam. “Our Bloemfontein office has even be visited by disgruntled victims arriving from Mozambique in an attempt to collect a vehicle they assumed they’d paid for”.
Highly sophisticated and always transparent, the modern online auction process has evolved to offer consumers all the prospective value and bargain-hunting prowess of a traditional auction floor from the comfort and convenience of a desktop or smartphone. As the largest auction house in southern Africa, Aucor’s online platforms live.aucor.com and the AucorLive App are designed to allow registered users either a front-row seat to watch the action, or the opportunity to place considered bids towards a prospective purchase.
The reality is that cyber-crime is as ever-evolving as it is relentless and consumers are encouraged to remain vigilant. “The adage, 'if a deal seems too good to be true, it probably is', is always worth remembering,” ends van der Linde.
At any time, Aucor’s helpline number, 063 934 9301, is available to ease any potential concerns or queries relating to the online auction process.
Ian McLaren has more than 20 years of experience as a motoring journalist. Here, he will be compiling a series of articles documenting his learning curve when it comes to all things auction. Find him on Twitter, Instagram and TikTok at @IanMcLaren76.
These articles aim to offer insights only and in no way encourage reckless or hit-and-miss purchasing decisions.