Action 9: Avoid Online Vehicle Purchasing Scams With Auto Trader.com

Many people who are looking to buy or sell a car are increasing turn to the Internet, but there can be a risk of fraud. Learn how you can protect yourself and your online vehicle purchases.

When Jason Horner became suspicious that a car deal he was looking at wasn't on the up and up, he called Auto Trader.com to report it.

Horner's call enabled the company to remove the phony ad and saved other buyers from potentially losing thousands of dollars to the scam.

Auto Trader.com's fraud task force is a frontline defense against illegal activity.

"Awareness is the best defense against fraud in the Web community. That's why we're educating our consumers and arming them with information on our Web Site," said an Auto Trader spokesman.

It's important to be aware of some important Internet red flags that might point to fraud.

Auto Trader.com says to avoid overseas transactions because they are difficult to trace. Don't buy a car sight unseen. Always verify payments, even escrow services and cashiers checks. Insist on a working phone number, a verified physical address and an automobile title as official proof of ownership.

"I'd be a little more cautious I guess, on private party sales and make sure that I actually saw the car rather than just corresponding through e-mail," said Horner.