Car Shipping Scams: How to Spot Them and Stay Protected

The demand for auto transport has skyrocketed in recent years. From individuals relocating across the country to dealerships moving valuable inventory, more people than ever are booking car shipping services. Unfortunately, this rise in demand has also opened the door for opportunistic scammers. Car shipping scams are becoming more common online, targeting unsuspecting customers with false promises, fake websites, and bait-and-switch pricing tactics. 

This article walks you through the most common types of car shipping scams, the red flags to watch for, and practical steps for avoiding car shipping scams before they happen. By understanding how these schemes work, you can protect your vehicle, money, and peace of mind. 

At Passport Transport, we’ve built our reputation as an enclosed-only, DOT-registered carrier that prioritizes safety, transparency, and professionalism. With decades of experience moving classic, exotic, and collector cars, we follow industry best practices to give customers confidence in every shipment. Read on to learn how to recognize a car shipping scam online and make the right choice regarding safe, reliable transport. 

Why Car Shipping Scams Happen

Car shipping scams happen because bad actors can easily exploit the industry. Unlike other regulated services, it doesn’t take much for a scammer to set up a website, pose as a broker, and lure unsuspecting customers. The rise of online marketplaces and lead-generation sites has made it even easier for fraudsters to appear legitimate, often offering lowball quotes that seem too good to be true.

Scammers typically prey on customers who need fast shipping or don’t have time to research a company thoroughly. Common targets include private buyers who’ve just won a car at auction, snowbirds moving vehicles seasonally, dealers shifting inventory, and first-time shippers unfamiliar with how auto transport works. If you understand the risks of a car shipping scam, you’ll be able to spot red flags early and avoid falling victim to a car shipping scam. 

Top Car Shipping Scams You Need to Know

Scammers use various tricks to exploit auto transport customers. By recognizing the warning signs of each scheme, you’ll avoid costly mistakes and protect your vehicle.

Bait-and-Switch/Low Quote Scam

One of the most common car shipping scams involves offering an ultra-low quote to win your booking.. Once your car is scheduled, the “carrier” suddenly claims that fuel costs, route changes, or last-minute fees require more money, often hundreds of dollars above the agreed price. If you refuse, they may threaten to cancel the pick-up or leave your car stranded. 

Warning sign: If a quote is significantly lower than competing offers, it’s probably a setup.

Fake or Hijacked Company Scam

Fraudsters often clone legitimate carrier websites, steal DOT or MC numbers, and pose as established companies. These fake profiles trick customers into paying deposits or wiring funds, only to vanish after payment.

Warning sign: Always check the FMCSA database to confirm a company’s DOT/MC number and verify the phone and email match official records. 

Upfront Full-Payment Scam

In this scam, a company demands full payment (or a minimum of 50%) upfront, usually by less traceable methods like MoneyGram, Western Union, gift cards, wire transfer, or cash, before vehicle pick-up. Once they’ve collected the money, they disappear without sending a truck.

Warning sign: Legitimate carriers and brokers usually take a small deposit or charge upon pick-up, not before. 

Phantom Booking/No-Show Scam

Everything looks normal. You receive a confirmation, a contract, or even a tracking number or a driver’s name. But on pick-up day, no truck arrives, and the “dispatch office” stops answering calls. 

Warning sign: Be wary if communication suddenly drops after booking, or if promised driver details never materialize. 

Title/Title Exchange Scam

This scam typically targets repossessions and auction vehicles. The fraudster offers to “handle the title exchange” as part of the transport process, but then disappears after receiving sensitive documents or payment for supposed fees.

Warning sign: Never hand over vehicle titles or documents to transporters unless you work directly with a verified auction or licensed dealer partner.

Shill Drivers/Uninsured Subcontractors

Some shady operators subcontract your car to uninsured or unqualified drivers without telling you. If damage occurs, the subcontractor may deny responsibility and vanish, leaving you with repair bills. 

Warning sign: Always request proof of cargo insurance and verify it directly with the insurer. 

Online Marketplace Scams

Marketplaces and auction apps are a favorite hunting ground for scammers. Fraudulent profiles with fake reviews lure buyers into shipping deals that never materialize.

Warning sign: Cross-check reviews on multiple sites and be cautious of profiles with glowing but generic feedback. 

Overpayment /Refund Scam

In this scheme, a buyer “accidentally” overpays for transport, then requests a partial refund. Later, their original payment bounces, and you lose the refund and the transport fee. 

Warning sign: Never send refunds until payments have fully cleared through verified banking channels. 

By recognizing these car shipping scams, you can avoid costly mistakes and choose a provider with proven credibility and transparent practices. 

Red Flags & Verification Checklist

Spotting car shipping scams starts with knowing what to look for before you book. Use this practical checklist to separate trustworthy providers from bad actors. 

How to Vet an Auto Transport Company

Protecting yourself from car shipping scams starts with a structured vetting process. Here’s a step-by-step approach you can use before booking any auto transport service.

Step 1: Verify USDOT and MC Numbers

Every legitimate transporter must have a US Department of Transportation (USDOT) and Motor Carrier (MC) number. Ask for both, then verify the information on the FMCSA’s SAFER Company Snapshot. Make sure the name, address, and status match the company you’re dealing with. 

Step 2: Confirm Business Identity

Check that the company uses a professional business domain (not a free email account) and lists a physical address and phone number. Call the number to confirm it connects to the business. 

Step 3: Review Independent Feedback

Look up the company on Google Reviews, the Better Business Bureau (BBB), and Trustpilot. Pay close attention to recent complaints, response patterns, and detailed reviews that provide more than generic praise. 

Step 4: Request a Written Quote and Contract

Reputable companies provide itemized written quotes and clear contracts. These should spell out pick-up/delivery timelines, all fees, insurance coverage, and cancellation terms. Avoid vague agreements that leave room for hidden costs.

Step 5: Ask About Subcontracting

Many brokers subcontract shipments. If that’s the case, ask for the name and credentials of the actual carrier handling your vehicle. Transparency here reduces risk. 

Step 6: Verify Insurance Coverage

Ask for a certificate of insurance and confirm coverage directly with the insurer if possible. Also, request details about how damage claims are documented and processed. 

Step 7: Use Secure Payment Methods

Pay with a credit/debit card or ACH transfer through a reputable processor, not cash, wire transfer, or crypto. Always keep receipts and transaction confirmations. 

Step 8: Document Before Shipment

Get a pre-shipment condition report from the carrier and take date-stamped vehicle photos. Confirm the driver’s credentials at pick-up and ensure they match the company’s records. 

These steps ensure you work with a professional carrier and shield you from online car shipping scams. A little due diligence goes a long way toward protecting your vehicle and your wallet. 

What to Do If You Suspect a Scam

Even when you take precautions, you may encounter a suspicious auto transport situation. Acting quickly can limit your losses and improve the chances of resolving the issue. Once you suspect or discover a scam, you can do a few things.  

At Passport Transport, we understand how serious car shipping scams can be. That’s why we operate as a fully registered, enclosed-only carrier with strict compliance, verified insurance, and decades of industry experience. 

By booking directly with a trusted enclosed auto transport provider, you reduce the risk of falling victim to fraudulent operators and ensure your vehicle is handled with the care and accountability it deserves.  

Preventive Contract Clauses & Payment Best Practices

A solid contract is your first line of defense against car shipping scams. Before signing, make sure the agreement includes:

Equally important is how you handle payments. Avoid full upfront payments by wire transfer or to unknown parties. Such methods make it almost impossible to recover funds if something goes wrong. Instead, use a credit/debit card, escrow service, or arrange payment after documented pick-up. Always hold back the final payment until you inspect your vehicle at delivery and note any issues. These steps protect your finances and ensure carriers remain accountable throughout the process. 

Scam-Proof Example: Safe Booking Workflow

A safe car shipping experience follows a straightforward, transparent process. Here’s what it should look like:

Passport Transport follows this workflow for every shipment, as a DOT-registered company. As an enclosed-only carrier, we provide written contracts, verified insurance, and professional drivers who handle each step with accountability. Our process eliminates the risk of car shipping scams and gives customers a clear path from booking to safe delivery. Visit our About Us page to find out more about Passport Transport

FAQs

What are common car shipping scams?

The most common include bait-and-switch pricing, fake or hijacked company profiles, upfront full-payment scams, phantom bookings, uninsured subcontractors, and refund/overpayment schemes. 

How can I avoid car shipping scams online?

Always verify DOT/MC numbers, check reviews across multiple platforms, request a written quote, and use secure payment methods like credit cards instead of wire transfers.

Is a prepaid wire transfer safe for car shipping deposits?

No. Wire transfers and crypto payments are high risk because they’re nearly impossible to reverse. Use a credit/debit card or a verified escrow service instead. 

How do I verify a carrier’s DOT number?

Visit the FMCSA SAFER Company Snapshot and search the USDOT or MC number. Ensure the listed business name and contact details match the company you’re working with. 

What payment methods are safest when booking auto transport?

Credit/debit cards and reputable escrow services are the safest. They provide a paper trail and allow disputes if something goes wrong. 

Can I get my money back if a carrier scams me?

If you paid by card, contact your bank to dispute the charge. Recovery is far more difficult if you use wire or cash. Always keep documentation to support your claim. 

What should an auto transport contract include?

Contracts should outline pick-up/delivery windows, itemized fees, insurance limits, inspection steps, and cancellation/rescheduling policies. 

How do I report a car shipping scam?

You can file complaints with the FMCSA, the Federal Trade Commission, the BBB, your state attorney general, and any involved marketplace platform.

Are marketplace aggregator quotes safe?

Not always. While some are legitimate, others allow unverified carriers to bid. Always vet the actual company transporting your vehicle. 

Why should I choose an enclosed-only carrier like Passport Transport to reduce scam risk?

Passport Transport operates as a DOT-registered, enclosed-only carrier with verified insurance and decades of experience. Booking directly with a carrier like us eliminates go-betweens, ensures accountability, and reduces exposure to scams. 

Conclusion

Car shipping scams may be on the rise, but they’re completely avoidable if you know what to look for. You can protect your vehicle and wallet by verifying DOT credentials, using secure payment methods, and insisting on clear, written contracts. Choosing the right partner makes all the difference.

The FMCSA has also recently introduced a new regulatory system to combat cargo theft and fraud and increase safety. The new system has added security measures, such as a facial ID verification process, to stop bad actors from creating new FMCSA-regulated entities or even illegally selling or stealing operating authority numbers. 

Passport Transport is a vetted, enclosed-only carrier with complete DOT registration, comprehensive insurance, and transparent contracts that protect every customer. We built our excellent reputation on trust, professionalism, and secure vehicle transport. Please request a quote in writing and verify our DOT number before you proceed. Then, get secure, enclosed car transport today. 

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