Selling your car in the UAE? Watch out for these potential scams

Criminal gangs are exploiting the Covid-19 pandemic to scam vulnerable people selling their cars, it has been warned.

The thieves know people are desperate to sell and dupe them into accepting fake cheques.

In some instances would-be buyers even speed off under the pretence of asking for a test drive.

Insurance firms and Dubai Police say these types of cases have increased recently and they urged people to be on their guard.

"A lot of residents are undergoing difficult situations right now and can't believe their luck when they find someone has agreed to buy their car," said Carol Orban, claims manager with RSA Insurance in Dubai.

“There are a lot of people who need to downsize and sell their car - in some cases because they need to clear loans before they leave the country.

“The criminals know this and are targeting these people because they realise they are vulnerable and need a quick sale.

“Many people have been trying to sell their cars for some time but could never get an offer close to the price they want and when they do they almost become hypnotised with excitement.”

Criminals use cheques in the knowledge it could take several days before the bank clears the payment by which time the thieves, and the car, are long gone.

Ms Orban said there have been six cases since May involving her company’s clients alone.

“One trend we have noticed is these incidents are often happening at night,” she said. “The person buying will say ‘I’m in a hurry, here’s the cheque, take it or leave it’ and then ask to take the car.” She added that thieves commonly use popular sites such as Dubizzle.

Capt Ahmad Al Sammahi of Dubai Police, said cheque fraud has been a common tactic used by thieves for some time but the number of cases had increased.

“From the beginning of this year, three different gangs specialising in these acts were caught,” he said.

“Some of the ring leaders operate outside the country so we’re working with authorities to bring them in.”

He there was often a common tactic employed by the thieves when buyers send someone to inspect the car. A woman will call to view the car. But then a man arrives in person, claim it is difficult to carry cash and urge the victim to accept a cheque.

Capt Al Sammahi urged anyone who notices suspicious behaviour when selling their car to contact 901.

In 2018, Dubai Police announced it had arrested 27 people in connection to 74 cases of fraud after buying cars with fake or bounced cheques. More recent statistics were not available.

Another tell-tale sign that a deal might not be legitimate is the cheque is presented late on a Thursday, with the fraudsters counting on the fact it will take several days for the bank to contact the seller to tell them the cheque has bounced.

Amr Elgabry, general manager of Dubizzle Motors, said while the company was not aware of any new cases, they worked closely with Dubai Police to bring fraudsters to justice in the past.

“As a rule of thumb, we encourage all sellers to conduct ownership transfer only at the RTA [centres] and only after receiving the agreed-upon sale amount in full either by cash or bank transfer,” he said.

“In doing so, sellers should approach ‘too-good-to-be-true’ deals with extreme caution and avoid cheque payments, especially when offered in a rushed way right before the weekend - which has been the classic model adopted by fraudsters.”