Is a private car seller who insists on using an escrow service I have never heard of a scammer?
Very likely. Fake escrow services are one of the most common tools used in online vehicle purchase fraud.
Last reviewed: 1 June 2026
Explanation
Fake escrow fraud in vehicle sales works like this: you find an appealing car listed at a good price on a classified site, the seller explains they are overseas or cannot meet in person, and they insist all transactions must go through a specific escrow service 'for buyer protection'. The escrow company is fraudulent — it collects your payment and releases neither the car nor your money. Real escrow for vehicle sales is rare in private markets; the overwhelming majority of private car purchases are completed in person with a bank transfer upon satisfactory viewing. If a seller refuses an in-person meeting or pushes you toward an unfamiliar escrow service, treat it as a clear sign of fraud.
Common red flags
- Seller insists on a specific escrow service rather than an in-person transaction
- Seller cannot meet in person or permit a viewing
- Car price is significantly below market value
- Seller claims to be overseas, in the military, or on a work assignment
- Escrow website was registered very recently
What to do now
- Insist on viewing the car in person before any payment
- Never use an escrow service suggested by the seller — find your own if needed
- Search the escrow company independently and check its registration
- Report suspicious listings to the classified-ad platform
Frequently asked questions
Is there any legitimate reason a car seller would insist on escrow?
For expensive collector vehicles sold internationally, escrow can be legitimate if you use an established independent escrow service you select yourself. Never use one the seller names.