Buying a pre-owned vehicle increasingly starts online, but consumers are now being warned that convincing photographs, dealership profiles and even familiar voices may not be enough to establish that a vehicle or seller is genuine.
The National Automobile Dealers’ Association (NADA) has raised concerns about a growing wave of digitally enabled scams targeting consumers, particularly in the pre-owned vehicle market.
BusinessTech highlighted the warning, noting that fraudsters are using generative artificial intelligence (AI) and digital manipulation tools to make fake vehicle advertisements and identities appear increasingly credible.
The South African Police Service recorded 147 149 commercial crime cases between April 2025 and March 2026, while the figures supplied in the report indicate a 2.5% overall increase in commercial and fraud-related offences.
A 2026 Global Anti-Scam Alliance study also found that 85% of South African participants had encountered a scam during the previous year.
For years, consumers have been advised to look out for obvious warning signs such as poor-quality photographs, spelling mistakes and inconsistent branding when buying a vehicle online.
Those indicators are becoming less reliable, as NADA said generative AI can now be used to produce polished vehicle advertisements, convincing dealership or banking identities, and cloned voice and video messages.
The technology allows fraudsters to create multiple elements of a false sales process quickly, making a fraudulent listing appear more legitimate.
‘Generative AI has made it easier for fraudsters,’ said NADA Vice-Chairperson Thembinkosi Pantsi.
‘In the past, poor grammar, blurry images, or inconsistent branding were easily noticeable red flags,’ said Pantsi.
One scheme highlighted by NADA involves supposedly repossessed vehicles.
Fraudsters may claim they can secure a repossessed car for a buyer before it reaches a bank auction. The prospective buyer is then asked to pay an upfront holding fee, often under pressure to act before someone else allegedly takes the vehicle.
NADA said repossessed vehicles in South Africa are sold through accredited auction houses and not through private messaging applications.
Another warning sign is a request for an Electronic Funds Transfer (EFT) to reserve the vehicle.
The organisation said scammers may create urgency by telling buyers that an immediate payment is needed to prevent another supposed buyer from purchasing the car.
The physical vehicle can become particularly difficult to verify when scammers use AI-generated images or pre-recorded video. NADA said fraudsters will often make excuses when asked to arrange an in-person viewing at a verifiable physical location.
South African consumers have also been warned about Remote Access Trojan (RAT) scams, which use malicious software to give criminals control over a smartphone or computer.
Bonolo Sebolai, Head of Fraud at TymeBank, said these attacks can be difficult to identify because criminals may operate the device while the legitimate customer is still using it.
‘RAT scams are particularly dangerous and extremely sophisticated because they are designed to use the device at the same time as the customer without any clear signs of a device takeover,’ he stated.
Rather than simply stealing login details, criminals can gain access to the device itself. This can potentially expose information displayed on the screen, including PINs, passwords, one-time passwords and banking activity.
RAT scams can begin with an apparently legitimate phone call, SMS or WhatsApp message.
The sender may claim to represent a bank, mobile network operator, courier company, online retailer or government department. The victim is told there is an urgent problem involving an account, device or delivery.
The next step is usually a request to click a link or install an application that is presented as a solution to the supposed problem.
Once malicious software is installed, the attacker may be able to observe activity on the device and interact with applications in real time.
This creates another layer of risk for consumers buying vehicles online, particularly where communication, payments and personal information are all handled through the same smartphone.
The scams described in the report point to a common feature: the transaction is designed to move faster than the buyer can properly verify it.
A professional-looking advertisement does not establish that a seller is legitimate, while an apparently official message does not prove that it came from a bank, dealership or government institution.
Consumers considering a pre-owned vehicle should therefore verify the seller independently, confirm the physical location, inspect the vehicle in person where possible and avoid transferring money simply because a seller claims another buyer is waiting.
Requests to install unfamiliar applications or click unexpected links should also be treated with caution, particularly when they are accompanied by claims that immediate action is required.
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