03/04/2026
🚨🚗Tennessee consumers: Please be aware of the recent rise in Facebook Marketplace auto scams. Before selling your vehicle, take extra steps to verify payment and protect yourself. It’s also important to understand what your auto insurance policy does and does not cover in cases of fraud. A little caution now can prevent a major headache later.
Read more here: https://fbitn.us/tndepartmentofinsuranceconsumeralert
***BREAKING NEWS*** Team TDCI is warning consumers about a recent uptick in auto scams involving unsuspecting consumers who agree to sell their vehicles to purported buyers via Facebook Marketplace – only to then lose their autos to the scammers and get nothing but headaches in return.
What's the scam? Individuals attempting to sell a vehicle on Facebook Marketplace are first contacted by someone claiming to want to buy the automobile. A price is agreed upon. In some instances, the seller and the buyer might even contact the seller’s bank about the proposed sale.
Then the unscrupulous buyer (either through a phony wire transfer or a fake cashier’s check) appears to provide the funds to the seller in order to complete the sale. (In one instance, a bank was contacted and the scammer provided a fake check.)
With the worthless money in hand and believing that the deal is done, the unsuspecting seller then gives the vehicle to the buyer (who might actually meet the seller in person). Days later, the seller realizes that the sale is cancelled either because the cashier’s check bounces or the wire funds were rescinded by the seller.
To make matters worse, the seller then learns that most insurance companies will not cover an auto theft that occurs via fraud.
“Most auto insurance policies have an anti-fraud provision that makes the auto owner ineligible for theft coverage if someone willingly gives their keys to another individual,” said TDCI Commissioner Carter Lawrence. "We stress to all consumers that they first read their insurance policies in order to better understand what is and – as equally important – what is not covered.”
Want to learn more? Follow the link in the comments below to learn scam-prevention tips in our full press release.
