Concerns tied to online scammers duplicating dealership websites are rising as fraud surges across the automotive retail industry, with digital activity contributing significantly to the increase.
The details: These website scams involve fraudsters creating bogus dealer sites and tricking car buyers into paying for vehicles they believe they’re buying from legitimate retailers.
In 2025, Wisconsin consumers alone were cheated out of $1.2 million in said online scams, also known as “dealer cloning.”
Scammers use a variety of tactics to lure would-be buyers to websites that can look nearly identical to a dealership’s legitimate site.
What they’re saying: “They’re using the same promotions. They’re using that real business’s name, their signage, their address. Sometimes using, you know, AI to generate images that look like the dealership or cars,” said Michael Domke of the Wisconsin Department of Agriculture, Trade, and Consumer Protection, with scammers also using social media ads to route consumers to the fraudulent digital platforms, per Wisconsin Public Radio.
Why it matters: Dealer cloning puts both consumers and retailers at risk, with fraudulent sites potentially costing buyers thousands of dollars while damaging the reputation and customer trust of the legitimate dealerships being impersonated.
The car business moves fast. Stay ahead.
The most important insights from automotive retail, delivered to your inbox daily.
Join 74,000 others now, it's free:
Between the lines: Concerns over bogus websites come as fraudulent activity across the automotive retail industry continues to escalate, with online transactions driving a large share of the surge.
Roughly 80% of dealers saw an increase in fraud-related activity over a 24-month period, with nearly half losing four or more cars to identity fraud in the past two years, according to a February report by eLEND Solutions.
More than one-third of dealers surveyed said 40% or more of identity fraud is tied to the increase in remote/digital purchase transactions, with 95% expecting fraud to become more prevalent as more of the vehicle transaction process becomes digital.
Bottom line: As more of the car-buying process moves online, dealers face growing exposure to fraud that extends beyond their own digital operations.
A quick word from our partner
A script can't tell when a shopper's about to walk.
Other AI fires the same canned reply at every shopper. Impel Sales AI reads sentiment, tone, and intent, then adjusts in real time, the way your best salesperson would.
It knows when to push, when to ease off, and when to book. Every conversation sounds like your store, not a bot.
Dealers report a 33% lift in appointment set rates.
