Social media has emerged as the biggest red flag for car buyers worried about scams, with over a third of consumers (34%) naming it the most likely place to be targeted, according to new research from Close Brothers Motor Finance.

Private sales (15%), online auctions (14%), and classified ads (8%) also set alarm bells ringing.

In contrast, traditional players fare far better in public trust - just 4% suspect dealerships, and only 3% fear finance providers could be a scam risk.

But the threat is real. Fourteen percent of drivers say they or someone they know has fallen victim to car-related fraud. Meanwhile, dealers are feeling the heat too: one in five (20%) report being scammed, and another 31% say they’ve narrowly avoided it.

That’s left nearly 80% of dealers worried about fraud’s impact on their business - with only a tiny 4% saying they’re not concerned.

Dealers are stepping up their defences as a result with 76% running customer ID and credit checks, 64% training staff to spot scams, and 40% deploying specialist fraud detection software. Just 7% have no plans to use such tech in the future.

“Fraud is sadly becoming more common in the vehicle market, and it’s something that both buyers and sellers need to be aware of,” said John Cassidy, managing director of sales at Close Brothers Motor Finance.

“While many people still feel confident buying from trusted dealerships, fraudsters are getting smarter, especially online.

“At Close Brothers Motor Finance, we’ve put in place extra security checks to help protect our customers and dealer partners. This includes using advanced ID and document checks, as well as working with organisations like Cifas to spot suspicious activity. These tools have already helped stop nearly 800,000 potential cases of fraud.

“We’re also providing training to our dealers to help them stay alert to scams, and we’ve created a team of fraud experts within our business to offer support when it’s needed.

Dealer data is drawn from Close Brothers Motor Finance’s Forecourt Foresight survey of 100 UK dealers earlier thi year. Consumer data comes from Censuswide’s 2024 survey of 2,074 UK drivers aged 17+ who own or lease a car.