With the festive season approaching, many South Africans are using bonuses and 13th cheques to shop for vehicles. Online and in-person auctions offering repossessed or pre-owned cars at competitive prices are especially appealing during this time.
However, increased buyer activity also attracts fraudsters. In late 2024, almost 70% of South Africans were targeted by fraud, with victims typically losing more than R12,500. Digital banking fraud surged by 86 percent, costing the industry R1.888 billion, and vehicle auction scams are becoming a major contributor.
“Vehicle auctions can provide excellent opportunities for South Africans to access quality vehicles at competitive prices. However, it is important to be vigilant. Understanding the common tactics used by scammers is your first line of defence,” says Lebogang Gaoaketse, Head of Marketing and Communications at WesBank.
Scammers use highly convincing tricks to make fake auctions look legitimate. Here are the most common warning signs:
Unrealistic prices
Scammers often list vehicles far below market value to lure buyers. A Hilux worth R350,000 may be listed at R180,000 or a VW Polo valued at R250,000 may be advertised for R120,000. Fake websites often use copied branding, professional designs and fabricated reviews to appear legitimate.
High pressure tactics
Fraudsters create false urgency by claiming an auction is closing or that other buyers are competing. This pressure pushes consumers into making rushed decisions.
Requests for large upfront deposits
Scammers may ask for deposits to reserve or remove a vehicle from auction. Some even use banking details that appear linked to reputable institutions. Gaoaketse advises, “Before paying any deposit, consumers should verify that the auction house is registered with the South African Institute of Auctioneers and has verifiable contact information, including a physical address.”
Requests for personal information upfront
Authentic platforms will never request ID numbers, banking information or passwords before bidding. Poor spelling, generic email addresses and missing contact details are also warning signs. “If the auction mentions WesBank or displays our logo, contact WesBank Auctions directly through our official website or customer service channels to confirm the legitimacy of the affiliation. Before engaging with any auction platform, do your homework,” Gaoaketse adds.
Protect yourself by following these safety principles before, during, and after bidding:
Inspect before paying
Never pay for a vehicle you have not physically inspected. View the car at the auction’s official premises during daylight hours and bring someone mechanically knowledgeable if needed.
Know how real auctions operate
Authentic auctions have registration processes, reserve prices, clear terms and secure payment channels. They do not demand deposits outside the auction and do not accept payment via crypto, cash or instant transfers to personal accounts.
Use secure and traceable payment methods
Legitimate auction houses provide proper receipts and documentation. If you suspect fraud, report it immediately.
“If you encounter what you believe to be a scam, report it. Contact the relevant auction house if their brand is being misused. Report the incident to the South African Police Service and the South African Fraud Prevention Service. Share your experience with others to help prevent future victims,” says Gaoaketse.
Choose trusted partners
WesBank partners only with verified and reputable auction houses that uphold strict standards of transparency and legitimacy. “When you finance a vehicle through WesBank, you are not just getting competitive rates and flexible terms. You are gaining peace of mind,” Gaoaketse says. “Our relationships with legitimate auction houses are built on decades of trust and stringent verification processes.”
Stay #ScamProof this festive season
WesBank encourages consumers to use its #ScamProof resources, which explain how scammers operate and how buyers can protect themselves. “The festive season offers genuine opportunities to access quality vehicles. By doing your homework, remaining alert and following these principles, consumers can protect themselves while achieving their mobility goals,” concludes Gaoaketse.
Manimal
Robert Hersov: Founder and Chairman – Invest Africa: Robert Hersov founded Invest Africa three years ago, after spotting an opportunity to create a platform for the growing number of individuals becoming involved in pan-African investments.Invest Africa is a network of decision makers at top global organisations, fund managers, private investors, family offices, entrepreneurs, and policy makers – all with a common interest in Africa. Hersov has launched operations in London, New York, Johannesburg, Geneva, Zurich and Dubai and has amassed hundreds of high level members.