$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
Auto purchase scams/Facebook
curbstoner unlicensed dealer scam
An unlicensed dealer poses as a private seller to flip vehicles without disclosing known defects, avoiding dealer regulations and consumer protections.
“car scam”
↑ 147%Key indicators
Usually targetsCar buyers
Often hitsSmall business owners
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
An unlicensed dealer buys vehicles cheaply at auction, often with known mechanical issues.
2
They list each vehicle online as a private sale to avoid dealer disclosure requirements and sales tax obligations.
3
The buyer has no recourse for defects because the curbstoner is not a registered dealer subject to lemon laws.
What to do first
Verify the seller's name matches the name on the vehicle title.
Related terms
curbstoningillegal car flipperunlicensed auto dealerAuto purchase scamsFacebookRisingCar buyersFirst-time buyersSmall business ownersCreators and online sellersReal estate professionals and homebuyersUnited StatesCanadacurbstoningillegal car flipper
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Nicole, 35, a car buyers, encountered what appeared to be a legitimate auto purchase scams situation while using Facebook. An unlicensed dealer buys vehicles cheaply at auction, often with known mechanical issues.
Step 2
What happened next was calculated: They list each vehicle online as a private sale to avoid dealer disclosure requirements and sales tax obligations.
Step 3
The pressure escalated quickly: The buyer has no recourse for defects because the curbstoner is not a registered dealer subject to lemon laws.
The outcome
Nicole realized something was wrong when seller has multiple vehicles listed for sale at the same time. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Verify the seller's name matches the name on the vehicle title. Nicole's experience shows why seller has multiple vehicles listed for sale at the same time and title is in a different name than the seller's are the clearest early warning signs.
How to identify it
- Seller has multiple vehicles listed for sale at the same time
- Title is in a different name than the seller's
- Seller insists on meeting in a parking lot rather than at their address
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Verify the seller's name matches the name on the vehicle title.
- ✓Search the seller's phone number online — if it appears on multiple car listings, they are likely a curbstoner.
- ✓Report suspected curbstoners to your state's DMV or department of motor vehicles.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The National Automobile Dealers Association estimates that curbstoning costs consumers hundreds of millions of dollars per year in the U.S.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Verify the seller's name matches the name on the vehicle title.
- ✓Search the seller's phone number online — if it appears on multiple car listings, they are likely a curbstoner.
- ✓Report suspected curbstoners to your state's DMV or department of motor vehicles.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The National Automobile Dealers Association estimates that curbstoning costs consumers hundreds of millions of dollars per year in the U.S.
BBB Scam Tracker 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Car buyers, First-time buyers
Geographic concentration
United States, Canada
Primary channel
Facebook — Auto purchase scams
Why this group is vulnerable
Car buyers are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The National Automobile Dealers Association estimates that curbstoning costs consumers hundreds of millions of dollars per year in the U.S.
Source notes
- BBB Scam Tracker 2025
Frequently asked questions
Common questions about curbstoner unlicensed dealer scam
How does the curbstoner unlicensed dealer scam work?+
An unlicensed dealer buys vehicles cheaply at auction, often with known mechanical issues. They list each vehicle online as a private sale to avoid dealer disclosure requirements and sales tax obligations. The buyer has no recourse for defects because the curbstoner is not a registered dealer subject to lemon laws.
What are the warning signs of curbstoner unlicensed dealer scam?+
Seller has multiple vehicles listed for sale at the same time Title is in a different name than the seller's Seller insists on meeting in a parking lot rather than at their address
What should I do if I encounter curbstoner unlicensed dealer scam?+
Verify the seller's name matches the name on the vehicle title. Search the seller's phone number online — if it appears on multiple car listings, they are likely a curbstoner. Report suspected curbstoners to your state's DMV or department of motor vehicles.
Who is most at risk for curbstoner unlicensed dealer scam?+
This scam primarily targets Car buyers, First-time buyers. It is most commonly reported in United States, Canada and typically appears on Facebook.
Is curbstoner unlicensed dealer scam on the rise?+
curbstoner unlicensed dealer scam is currently on the rise with growing reports. It has been reported across US, CA. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
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