UCN_01 Revised
12/23/09
2:29 PM
Page 1
January 4, 2010
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Cyber Scammer Steals Dealer’s Internet ID By David Piestrzynski
Rush - Dated Material
Auto dealers now have a new worry – somebody stealing their store’s identity. In November, Morris Skeropa, owner of Summit Auto Sales Inc. in Pontiac, Mich., began receiving phone calls from consumers asking about the cars listed on his dealership’s Web site. He even got one call from a woman in Connecticut asking when her car would be delivered At that time, however, Skeropa had not yet made a Web site for his store. “She asked where her car was,” he said. “I told her she didn’t buy a car from us.” Someone had created a fake Web site for Summit Auto Sales, listing an inventory of lowmileage cars for discount prices, sometimes less than half the car’s retail value. Skeropa said he was getting calls from all over the country from customers claiming to have seen listings for vehicles that weren’t even in his buyhere, pay-here operation’s
inventory. The fake site listed about 100 cars, many of which were 2008 and 2009 models. “The deals being offered on the fake Web site probably gave the buyers a sense of urgency to act quickly,” he said. Within a day of the fake Web site going live, he began receiving calls. Skeropa and his staff discovered the site was created by someone in California, and registered to a company in Australia. The thieves used links to fake fraud protection Web sites and listed several false certifications to make the site look convincing. They even went as far as listing a false Carfax vehicle history certification. After filing a police report, Skeropa learned that these scammers had also targeted other dealerships in Michigan with the same Web page design and inventory listings. The Web site targeting Summit has been taken down. Skeropa said his dealership was likely targeted because it didn’t have a Web site. He has since created a site for his dealership. Skeropa is warning his fellow dealers and other businesses to remain alert of scams such as these. Quick action helped protect Summit’s reputation. “We contacted everybody we could to let them know what was going on,” he said. “Our banks, the Secretary of State, we screamed that we weren’t the people doing this.” Skeropa also immediately contacted the Michigan Better Business Bureau to let them know about the fake Web site. He has tried to make the Michigan authorities more aware of the scam.
Photo by David Piestrzynski CAUGHT IN THE WEB: Morris Skeropa, owner of Summit Auto Sales in Pontiac, Mich., fought to save his store’s good name after a con artist created a phony Web site. Not having a Web site of his own made Skeropa vulnerable to this form of Internet fraud.
Another Service Contract Company Folds By Jeffrey Bellant
Kentucky’s attorney general filed a consumer protection lawsuit against The Eagle Warranty Corp. and its president this month. Attorney General Tom Corbett filed the suit against the Scranton, Pa.-based company and its president, Charles Yakulski. Corbett, in a press release on Dec. 18, said the company has sold thousands of warranties for used cars through dealerships in twelve states: Delaware, Kentucky, Michigan, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas and West Virginia. Corbett’s announcement stated his office’s Bureau of Consumer Protection obtained a preliminary injunction, freezing the company’s bank accounts, business records and other assets. The lawsuit seeks restitution for all customers who have not received the services or products that they have paid for, along with civil penalties of up to $1,000 per violation, or $3,000 for each violation involving a senior citizen. The lawsuit also seeks to prohibit the defendants from operating as a used-car warranty business, or in a similar capacity. Continued on page 4
IN THIS ISSUE • CarMax swings to a profit in its latest quarter. – Page 3
• Industry analysts predict a more rational market this year. – Page 8
• Tax season has begun with the help of technology. – Page 5
• A used-car operation moves into a preowned building. – Page 15