The National Automobile Dealers' Association (NADA) has issued a warning to South African consumers about a surge in sophisticated digital scams targeting vehicle buyers.
Rising living costs have driven more people to seek affordable mobility options, but this has also created opportunities for fraudsters to exploit the market, particularly in the pre-owned vehicle space.
Figures from the South African Police Service show that 147 149 commercial crime cases were recorded between April 2025 and March 2026, representing a 2.5 per cent increase in fraud-related crimes. A study by the Global Anti-Scam Alliance found that 85 per cent of participants in South Africa had encountered a scam in the past year.
Thembinkosi Pantsi, Vice-Chairperson of NADA, explains that generative artificial intelligence has made scams harder to detect. In the past, poor grammar or low-quality images were clear warning signs, but fraudsters now use AI to create convincing advertisements, complete with realistic dealership and banking identities. Voice and video cloning technology is also being used to add credibility to fraudulent listings.
Despite these developments, there remain clear red flags for consumers to watch out for. Fraudsters often claim they can secure repossessed vehicles before bank auctions in exchange for upfront fees, but in South Africa repossessed vehicles are only sold through accredited auction houses. Another common tactic is pressuring buyers to make immediate deposits via electronic transfer to hold a vehicle, while refusing to allow in-person viewings at verifiable locations.
He stressed that accountability is the strongest safeguard for buyers. Transacting through accredited dealerships ensures statutory protection under the Consumer Protection Act and guarantees that vehicles undergo proper background and technical checks. He also noted that technology can be used positively, with buyers able to cross-reference reviews, complaints and company histories online to verify sellers before committing to a purchase.
Consumers are urged to use every available resource to confirm the legitimacy of sellers and to prioritise established dealerships with a physical presence and proven track record. With scammers using increasingly advanced methods, vigilance remains essential in protecting against financial loss in the automotive market.
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