The Insurance Crime Bureau (ICB) has issued a vehicle recall scam alert following a significant increase in the number of cases, says insurance company Dialdirect.<\/p>\n
“Criminals execute a recall scam by contacting unsuspecting vehicle owners and posing as officials representing a car manufacturer – convincing the owners that their vehicle is part of a batch being recalled due to serious malfunctions,” said Maanda Tshifularo, head of Dialdirect Insurance.<\/p>\n
“With the promise of a repaired or replacement vehicle, many people buy into this scam and end up losing tens, or even hundreds of thousands of rand.”<\/p>\n
Garth de Klerk, chief executive officer of the ICB, says that initial contact is normally made telephonically, where a criminal posing as an official informs victims that their vehicle is being recalled.<\/p>\n
“This is often followed up with a spoof e-mail, with criminals going to great lengths to make their communication seem official.<\/p>\n
“They convince vehicle owners that they shouldn\u2019t drive their vehicle under any circumstances and make arrangements to collect it \u2013 most often using a tow truck,” said de Klerk.<\/p>\n
A couple of days later, the owner would typically phone the dealership for an update, only to discover that the vehicle has in fact been stolen. These crimes, where millions have been lost, are likely driven by single or multiple syndicates.<\/p>\n
The end market of these syndicates varies, with some of the vehicles cloned and re-sold locally and others, often high-end vehicles, taken across the border, or shipped to other countries, and sold there.<\/p>\n
De Klerk says that it\u2019s surprisingly easy for criminals to get profiling details of an individual and the car they drive, due to people often sharing too much information through social media platforms and telephonically \u2013 mostly through fake ‘market research calls’.<\/p>\n
Dialdirect and the ICB offered the following tips to avoid becoming a victim:<\/p>\n
“It\u2019s wise to remember that there could always be a scamster somewhere trying to separate you from your vehicle or hard-earned money.<\/p>\n
“Always be alert, don\u2019t trust too easily and do your homework, especially when large amounts of money or valuable possessions are concerned,” Tshifularo said.<\/p>\n