Don’t transfer any money before viewing a car – you could be left out of pocket.

We show you the safest ways to pay for your next car and how to avoid so-called "virtual vehicle" scams.

View our slide show on staying safe

Are electronic money transfers safe?

International money transfer services allow sellers to receive funds online.

However, some fraudulent sellers will ask buyers to pay for a car before viewing it. After the seller receives payment, they won’t keep their end of the bargain – causing the buyer to be without a car – and their money.

Look for third party payment services which include fraud protection schemes – these will reimburse you for any loss of money which is the result of illegal activity.

Search around before paying by electronic transfer and ALWAYS make sure you view a car in person before handing over any money.

Safe ways to pay

Try and hand over money in a bank if paying by cash, so the seller can pay it in straight away. Try and avoid carrying around large sums of cash – arrange to view the car during bank opening hours so you can make a transaction on the same day.

Get the seller to sign a receipt or agreement before going to a bank and withdrawing any money. It’s a good idea to take someone close with you.

You could always leave any large sums with close friends or relatives while you view a car

When paying by cheque, make sure you’ve got the correct funds in your account and ask the seller first – not everyone will accept this form of payment, and the seller may want to hold the car until all funds have been cleared. Again it’s a good idea to sign an agreement with the seller first, as proof of purchase.

Cheques and banker’s drafts can be fraudulent or counterfeit so your seller may not be prepared to accept these.

NEVER pay using a money transfer company which exists for transferring money between people who know each other.

Be careful when using escrow services as some are bogus and set up by fraudsters. If you do use escrow make sure it’s based in the UK and verified by the FSA.

View our slide show on staying safe

How to avoid a "virtual vehicle" scam

Look for cars advertised at unusually low prices - they could be stolen. Beware of shipping sites as some are fake and set up by criminals.

Watch out for emails which contain incorrect spelling, punctuation and requests for your personal information – it could be a scam.

Check the seller has a landline number and only arrange to view the vehicle at their home address.

And beware of sellers who claim to live abroad and make excuses to prevent you viewing the car. It’s a good idea to bring someone with you to help identify any problems.

Five steps to stay safe when buying

1. Get a car history check before buying – this will tell you if the car’s been written off, stolen, scrapped or is subject to outstanding finance
2. View our essential buyer’s checklist and take it with you when viewing a car
3. It’s a good idea to bring someone with you to help identify any problems
4. Locate the Vehicle Identity Number (VIN) – it should be on a small plate riveted under the bonnet or stamped on the car's floor pan. Sometimes it’s located at the base of the windscreen or in the door pillar. There should be no stickers or obstructions placed over it and no other signs of tampering
5. Hold the V5C registration document up to the light – if you can’t see a DVLA watermark it could be a fake. Check the V5C against the vehicle – the numberplate, make, model and VIN should match those on the car

More advice

• Read the BBC article about fraudsters who target money transfers
• See the Metropolitan Police Fraud Alert web pages about money transfer, criminal cashback fraud and bogus ESCROW sites
• Visit our safety and security centre for more advice on buying and selling safely

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