ONLINE sales and ‘click and collect’ transactions are under scrutiny as police warn of an upsurge in criminal activities involving cars sold to people who have used fake drivers’ licenses and quoted stolen credit-card numbers.

One dealer has lost $20,000 in a car sale that involved people using identity theft which used stolen details of a person, and were then printed on a fake driver’s license using a photograph of the thief.

Victoria Police, and other police forces, are currently investigating however car dealers have been told to be on high alert.

The Victorian Automobile Chamber of Commerce (VACC) said that according to its information, in most instances the scamming is being done by two women and a man.

VACC industry policy head Michael McKenna told GoAutoNews Premium that dealers have to be very alert as there is no protection from credit suppliers.

He said the photos of the fake licenses (shown here) were taken by a VACC member and dealer who became suspicious. The case is now with the police.

He added that the situation with Covid-19 and the increase in online transactions was partly to blame for the increased illegal activity but said that it has happened previously.

“Covid-19 has highlighted a loophole that has always been there with identity theft and stolen credit cards,” he said.

“The difference may be that in these current conditions, dealers may be more desperate to make a sale and so take extra risks. This situation with the criminal activity shows that they can’t afford to take any risks.”

Mr McKenna said that so far the alleged perpetrators have based their activity in the southern suburbs of Melbourne as well as Gippsland. However, it can apply to anywhere in Australia.

The VACC reported that the typical cars the criminals seek to purchase are Audi A4 and A6. They arrive at dealerships in a black Toyota Corolla with Victorian registration plates 1SN-8UC but it is not known whether th

e plates have been duplicated or stolen.

The offenders use fake driver’s licenses (with the names and addresses stolen from actual people) and stolen credit card numbers.

The VACC said that in two instances, the people have taken delivery and then the dealer has had to refund the money, or the dealer has received a chargeback notice from the credit card company. These have been amounts as high as $20,000.

“Advice from the Commonwealth Bank Card Fraud/Security section is for dealers to use BPay where possible, sight the credit card where possible, obtain a signature where possible and to use 100 points of identification,” Mr McKenna said.

“If your business accepts or processes credit or payment cards there are security standards you must adhere to via the  Payment Card Industry (PCI)  Security Standards. You can view the PCI  standards by visiting the Business Victoria webpage.”

Mr McKenna said the VACC is currently taking legal advice from HWL Ebsworth Lawyers on the legal position of electronic signatures when creating a contract of sale electronically. This will be available to VACC members when that advice is available.

“VACC thanks the dealers who have provided this information,” he said.

“If your business comes across the alleged perpetrators you are urged to contact your local police.”

By Neil Dowling